# PLSS URGENT 13th ques Q13. Ram and Shyam are partners. Their profit sharing ratio is 3 : 2 Mohan joins the partnership for 1/4th share in profit (of which he acquires 2/3 from Ram and 1/3 from Shyam). Mohan brings in Rs. 6,00,000 for capital and Rs. 2, 40,000 for goodwill. 1/4 of the amount of goodwill is withdrawn by old partners.   Pass necessary journal entries and find out the new profit sharing ratio.

Dear Student

 Journal Date Particulars Debit Credit Bank A/c Dr. 840,000 To Mohan's Capital A/c 600,000 To Premium for Goodwill A/c 240,000 (Being ram brought his capital and share of goodwill) Premium for goodwill A/c Dr. 240,000 To Ram's Capital A/c (2,40,000 x 2/3) 160,000 To Shyam's Capital A/c (2,40,000 x 1/3) 80,000 (Being premium for goodwill divided between sacrificing partners) Ram's Capital A/c Dr. 80,000 Shyam's Capital A/c Dr. 40,000 To Bank A/c 120,000 (Beingg half goodwill withdrawn by partners)

 Calculation of New PSR Particulars Ram Shyam Mohan Old Ratio 3/5 2/5 0 Share of New Partner 1/4 Total share sacrificed by Old partners for new partner 1/6 1/12 (1/4 x 2/3) (1/4 x 2/3) New Share of Ram  and Shyam 26/60 19/60 (3/5 - 1/6) (2/5 - 1/12) Therefore New PSR 26/60 19/60 1/4 or 15/60

Sacrificing ratio given = 2:1.

Regards

• 0
journal entries:
(i) bank a/c                                         Dr.    8,40,000
to premium for goodwill a/c                                   2,40,000
to mohan's capital a/c                                             6,00,000
(being cash brought in )

(ii) premium for goodwill a/c            Dr.  2,40,000
to ram's capital a/c                                                1,60,000
to shyam's capital a/c                                               80,000
(being goodwill distributed)

(iii) ram's capital a/c                          Dr.      40,000
shyam's capital a/c                      Dr.      20,000
to bank a/c                                                                60,000
(being 1/4 of goodwill withdrawn)

Working notes:
(i)calculation of new PSR:

ram  :   shyam
old ratio      3             2
share of mohan= 1/4
remaining share= 1-1/4=3/4

ram's new share =3/5 x 3/4=9/20
shyam's new share= 2/5x3/4=6/20
mohan's share= 1/4x5/5=5/20

new profit sharing ratio = 9:6:5

• -1
What are you looking for?