(Q31 to 40)Admission of a Partner TS Grewal Solutions 2025-26

In this article, I have provided Admission of a Partner TS Grewal Solutions 2025-26. You can find the solutions of specifically Q31 to Q40 here. If you have any doubts regarding any of these questions, you can ask in the comments. I will try to resolve your doubts as soon as possible.

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Question 31: (A and B)

A and B were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted C as a new partner for 3/7th share in the profit and the new profit-sharing ratio will be 2: 2:3. C brought 2,00,000 as his capital and 1,50,000 as premium for goodwill. Half of their share of premium was withdrawn by A and B from the firm. Calculate sacrificing ratio and pass necessary Journal entries for the above transactions in the books of the firm.

Answer:

Journal
Date	Particulars		L.F.	Debit	Creditc

	Cash A/c	Dr.		3,50,000
	To C’s Capital A/c				2,00,000
	To Premium for Goodwill A/c				1,50,000
	(C brought capital and Premium for Goodwill)

	Premium for Goodwill A/c	Dr.		1,50,000
	To A’s Capital A/c				1,10,000
	To B’s Capital A/c				40,000
	(Premium for Goodwill distributed)

	A’s Capital A/c	Dr.		55,000
	B’s Capital A/c	Dr.		20,000
	To Cash A/c				75,000
	(Half of the goodwill withdrawn by A and B)

Calculation of Sacrificing Ratio

Sacrificing Ratio =Old ratio- new ratio

	A’s	=3/5-2/7
		=11/35
	B’s	=2/5-2/7
		=4/35
			X		Y
Sacrificing Ratio =			11/35	:	4/35
=			11	:	4

Working Notes-

WN1

Distribution of Premium for Goodwill

A will get =1,50,000×11/35=1,10,000

B will get 1,50,000×4/35=40,000

WN2

Amount of Premium for Goodwill withdrawn

A will get =1,10,000×1/2=55,000

B will get =40,000×1/2=20,000

Question 32: (Mahesh and Suresh)

Mahesh and Suresh were partners in a firm sharing profits and losses in the ratio of 2 : 1. They decided to admit Nita into partnership with 1/4th share in the profits. Nita brought 2,00,000 for her capital and the requisite amount of goodwill premium in cash. The goodwill of the firm is valued at 12,00,000. The new profit-sharing ratio of the partners is 2: 1:1. Mahesh and Suresh withdraw their share of goodwill

Pass necessary Journal entries in the books of the firm for the above transactions. (CBSE 2023)

Answer:

Date	Particulars		Dr.	Cr.
(i)	Bank A/c	Dr.	5,00,000
	To Nita’s Capital A/c			2,00, 000
	To Premium for Goodwill A/c			3,00,000
	(Being Nita brought for her capital and amount of goodwill premium in cash)
(ii)	Premium for Goodwill A/c		3,00, 000
	To Mahesh’s Capital A/c			2,00,000
	To Suresh’s Capital A/c			1,00,000
	(Being premium shared)
(iii)	Mahesh’s Capital A/c		2,00,000
	Suresh’s Capital A/c		1,00,000
	To Bank A/c			3,00,000
	(Being Mahesh and Suresh withdraw their share of goodwill)

Working note:

1. Nita brought the requisite amount of goodwill premium =12,00,000×1/4=3,00,000

Premium 3,00,000 will be shared by Mahesh and Suresh in sacrificing ratio 2:1

Mahesh=3,00,000×2/3=2,00,000

Suresh=3,00,000×1/3=1,00,000

2. Gaining and sacrificing Ratio

		New Ratio		Old Ratio
Mahesh	=	2/3	–	2/4	=	8-6/12	=	2/12	Sacrificing Ratio
Suresh	=	1/3	–	1/4	=	4-3/12	=	1/12	Sacrificing Ratio
Nita	=	0/3	–	1/4	=	0-3/12	=	-3/12	Gaining Ratio

Question 33: (A and B)

A and B are partners sharing profits in the ratio of 2 : 1. They admit C for 1/4th share in profits. C brings in 30,000 for his capital and 8,000 out of his share of 10,000 for goodwill. Before admission, goodwill appeared in books at 18,000. Give Journal entries to give effect to the above arrangement.

Answer:

Journal
Date	Particulars		L.F.	Debit	Credit

	A’s Capital A/c	Dr.		12,000
	B’s Capital A/c	Dr.		6,000
	To Goodwill A/c				18,000
	(Goodwill written-off)

	Cash A/c	Dr.		38,000
	To C’s Capital A/c				30,000
	To Premium for Goodwill				8,000
	(C brought Capital and goodwill)

	Premium for Goodwill A/c	Dr.		8,000
	C’s Capital A/c	Dr.		2,000
	To A’s Capital A/c				6,667
	To B’s Capital				3,333
	(C’s share of goodwill distributed between A and B in Sacrificing Ratio)

Working Notes:

WN1: Writing-off of Goodwill

A’s Capital Account will be debited by =18,000×2/3=12,000

B’s Capital Account will be debited by =18,000×1/3=6,000

WN2: Distribution of C’s share of Goodwill

A will get =10,000×2/3=6,667

B will get =10,000×1/3=3,333

Question 34: (Rohit and Mohit)

Rohit and Mohit were partners in a firm sharing profits and losses in the ratio of 3: 2. Rahul was admitte into partnership for 1/3 share in profits. Goodwill of the firm was valued at 30,000. Rahul brought 40,000 as capital and 5,000 out of his share of goodwill premium in cash. At the time of Rahul’s admission, goodwill was appearing in the books of the firm at 15,000.

Pass necessary Journal entries for the above transactions in the books of the firm on Rahul’s admission.(CBSE 2023)

Answer:

Date	Particulars		L.F.	(Dr.) ₹	(Cr.) ₹
1.	Rohit’s Capital A/c	Dr.		15,000
	Mohit’s Capital A/c				9,000
	To Goodwill A/c				6,000
	(Being old goodwill Written off in old ratio 3:2)
	Bank A/c	Dr.		45,000
	To Z’s Capital A/c				5,000
	To Premium for Goodwill A/c				40,000
	(Being premium for goodwill and Capital brought by Rahul `)`
2.	Premium for Goodwill A/c	Dr.		5,000
	Rahul’s Current A/c	Dr.		5,000
	To Rohit’s Capital A/c				6,000
	To Mohit’s Capital A/c				4,000
	(Being goodwill credited to X and Y in sacrificing ratio 3:2)

Working note:

WN 1: calculation of Goodwill of Rahul

Rahul Share of Goodwill = 30,000×1/3=10,000

Note : Since, full amount of goodwill is not brought by Rahul in cash therefore balance is to adjusted by Rahul’s Current.

Question 35: (Rao, Murty, and Shah)

On the admission of Rao, goodwill of Murty and Shah is valued at 30,000. Rao is to get 1/4th share of profits. Previously Murty and Shah shared profits in the ratio of 3 : 2. Rao is unable to bring amount of goodwill. Give Journal entries in the books of Murty and Shah when:
(a) Goodwill does not exist in the books

(b) Goodwill does not exist in the books at 10,000.

Answer:

(a) Goodwill does not exist in the books

Journal
Date	Particulars		L.F.	Debit	Credit

	Rao’s Capital A/c	Dr.		7,500
	To Murty’s Capital A/c				4,500
	To Shah’s Capital A/c				3,000
	(Rao’s share of goodwill charged from his capital account and distributed between Murty and Shah in sacrificing ratio i.ech 3:2)

(b) Goodwill does not exist in the books at 10,000.

Journal
Date	Particulars		L.F.	Debit	Credit

	Murty’s Capital A/c	Dr.		6,000
	Shah’s Capital A/c	Dr.		4,000
	To Goodwill A/c				10,000
	(Goodwill written-off at the time of Rao’s admission in old ratio)

	Rao’s Capital A/c	Dr.		7,500
	To Murty’s Capital A/c				4,500
	To Shah’s Capital A/c				3,000
	(Rao’s share of goodwill charged from his Capital Account and distributed between Murty and Shah in sacrificing ratio i.e. 3:2)

Working Notes;

WN1: Calculation of Rao’s share of Goodwill

Rao’s share of goodwill=30,000×1/4=7,500

WN2: Adjustment of Rao’s share of Goodwill

Murty will get =7,500×3/5=4,500

Shah will get =7,500×2/5=3,000

Question 36: (A, B, and C)

A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay 90,000 for his share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners introduced 1,20,000 each as their capital. You are required to pass necessary Journal entries.

Answer:

Journal
Date	Particulars		L.F.	Debit	Credit

	Bank A/c	Dr		3,30,000
	To D’s Capital A/c				1,20,000
	To E’s Capital A/c				1,20,000
	To Premium for Goodwill A/c				90,000
	(Capital and Goodwill brought in cash)

	C’s Capital A/c	Dr.		36,000
	E’s Capital A/c	Dr.		45,000
	Premium for Goodwill A/c	Dr.		90,000
	To A’s Capital A/c				1,35,000
	To B’s Capital A/c				36,000
	(Goodwill adjusted)

Working Notes:

WN1: Calculation of Sacrificing Ratio

A :B :C=5:4:1 (Old Ratio)

A :B :C :E=3:4:2:2:1 (New Ratio)

Sacrificing (or Gaining) Ratio = Old Ratio – New share

=510−312=30−1560=1560 (Share of sacrifice)

B’s share =4/10−4/12=24−20/60=4/60 (Share of sacrifice)

C’s share =1/10−2/12=6−10/60=−4/60 (Share of gain)

WN2: Adjustment of Goodwill
D’s share in goodwill for 2/12th share=90,000

∴Total goodwill of the firm = 90,000×12/2= ` 5,40,000

E’s share in goodwill = 5,40,000×1/12= ` 45,000

C’s share in goodwill = 5,40,000×4/60= ` 36,000

Question 37: (A and B)

A and B are partners in a firm with capital of 60,000 and 1,20,000 respectively. They decide to admit C into the partnership for 1/4th share in the future profits. C is to bring in a sum of 70,000 as his capital. Calculate amount of goodwill.

Answer:

Actual Capital of the firm after admission of C = A’s Capital + B’s Capital + C’s Capital

= 60,000 + 1, 20,000 + 70,000 = 2, 50,000

Capitalised value of the firm on the basis C’s share= 70,000×4/1=2,80,000

Goodwill= Capitalised value of the firm – actual capital of the firm

=2,80,000-2,50,000

=30,000

Question 38: (Anil and Sunil)

Anil and Sunil are partners in a firm with fixed capitals of 3,20,000 and 2,40,000 respectively. They admitted Charu as a new partner for 1/4th share in the profits of the firm on 1st April, 2024. Charu brought 3,20,000 as her share of capital.
Calculate value of goodwill and record necessary Journal entries. (AI 2013 C)

Answer:

Journal
Date	Particulars		L.F.	Debit	Credit
2012April 1	Bank A/c	Dr.		3,20,000
	To Charu’s Capital A/c				3,20,000
	(Capital brought in by Charu)

	Charu’s Current A/c	Dr.		1,00,000
	To Anil’s Current A/c				50,000
	To Sunil’s Current A/c				50,000
	(Charu’s share of goodwill adjusted through current accounts)

Working Notes: Calculation of Hidden Goodwill

Total capital of the firm on the basis od Charu’s capital=3,20,000×4/1=	12,80,000
Less- adjusted cpital of partners + new partner’s capital=	(8,80,000)
	4,00,000

Charu’s share of goodwill=4,00,000×1/4=1,00,000

Financial Statements of a Company Class 12 Notes

Question 39: (Vanshika and Shikha)

Vanshika and Shikha were partners in a firm with capitals of 1,00,000 and 80,000 respectively. They admitted Nisha on 1st April, 2022 as a new partner for 1/4 share in the future profits of the firm. Nisha brought 90,000 as her capital. Nisha acquired her share equally from Vanshika and Shikha. Calculate the value of goodwill of the firm and pass necessary Journal entries on Nisha’s admission, assuming that Nisha did not bring her share of goodwill premium in cash. Show the working clearly. (CBSE 2023)

Answer:

Date	Particulars		Dr.	Cr.
(i)	Bank A/c	Dr.	90,000
	To Nisha’s Capital A/c			90, 000
	(Being Nisha brought for her capital)
(ii)	Nisha’s Current A/c		22, S00
	To Vanshika’s Capital A/c			11,250
	To Shikha’s Capital A/c			11,250
	(Being premium shared)

Working Notes:

1. Valued capital of firm as per Nisha’s Capital = 90,000×4/1=3,60,000

2. Actual Capital of all partner including Nisha =1,00,000 + 80,000+90,000=2,70,000

3. Goodwill of the Firm (Hidden)= 3,60,000-2,70,000=90,000

Nisha’s Share in Goodwill×1/4 =22.500

Goodwill ` 22,500 will be shared by Vanshika and Shikha in sacrificing ratio 1:1

Vanshika =22,500×1/2=11,250

Shikha =22,500×1/2=11,250

Question 40: (X and Y)

X and Y are partners with capitals of 50,000 each. They admit Z as a partner for 1/4th share in the profits of the firm. Z brings in 80,000 as his share of capital. The Profit and Loss Account showed a credit balance of 40,000 as on date of admission of Z.
Give necessary journal entries to record the goodwill.

Answer:

Total Capital of the firm after Z’s admission = X’s Capital + Y’s Capital + undistributed Profit +

Z’s Capital

= 50,000 + 50,000 + 40,000 + 80,000

= 2,20,000

Capitalised value of the firm on the basis Z’s share= 80,000×4/1=3,20,000

Goodwill= Capitalised value of the firm – Total captial after z’s admission

=3,20,000-2,20,000=1,00,000