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5.34 Double Entry Book Keeping—CBSE XII
Step 4: Deficiency is to be borne by X and Y equally as follows:
X = ` 6,000 × 1/2 = ` 3,000; Y = ` 6,000 × 1/2 = ` 3,000.

Step 5: Division of Profit:
X’s Share = ` 76,000 × 2/4 = ` 38,000 – ` 3,000 = ` 35,000.
Y’s Share = ` 76,000 × 1/4 = ` 19,000 – ` 3,000 = ` 16,000.
Z’s Share = ` 76,000 × 1/4 = ` 19,000 + ` 3,000 (X) + ` 3,000 (Y) = ` 25,000.

Illustration 27.
Following is the Balance Sheet as at 1st April, 2018 of Sushil and Satish who are in partnership
sharing profits and losses in the ratio of 5 : 2:
Liabilities ` Assets `
Sundry Creditors 1,30,000 Bank 10,000
Capital A/cs: Stock 20,000
Sushil 80,000 Debtors 30,500
Satish 70,000 1,50,000 Less: Provision for Doubtful Debts 500 30,000
Plant and Machinery 50,000
Building 1,70,000
2,80,000 2,80,000

On the above date, they admitted Samir as new partner on the following terms:

(i) That Samir will bring in ` 1,00,000 for his capital and the necessary amount of goodwill/
premium for goodwill for 3/8th share in future profits.
(ii) Goodwill of the firm on Samir’s admission was valued at ` 1,40,000.
(iii) That new profit-sharing ratio will be 2 : 3 : 3.

Pass necessary Journal entries to carry out these and prepare Balance Sheet of the firm after
Samir’s admission as a partner.

Solution: JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

2018
April 1 Bank A/c ...Dr. 1,52,500
To Premium for Goodwill A/c 52,500
To Samir’s Capital A/c 1,00,000
(Samir brought in his capital and his share of goodwill premium)
April 1 Premium for Goodwill A/c (WN 2) ...Dr. 52,500
Satish’s Capital A/c (WN 3) ...Dr. 12,500
To Sushil’s Capital A/c 65,000
(Goodwill/premium for goodwill brought by Samir transferred to the
Capital A/c of Sushil and also Satish’s Capital A/c is proportionately
debited for gain)