**Ultimate Book of Accountancy Class 12 Part A Solutions – Admission of Partner**

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### Practical Problems

**Solution 1:**

Let the profit be = 1

Share of new partner = 1/10

Remaining profit = 1 – 1/10 = 9/10

William new share = 3/4 x 9/10 = 27/40

Andrew = 1/4 x 9/10 = 9/40

Colin = 1/10 x 4/4 = 4/40

**Solution 2:**

Green’s Share = 1/10

He acquires this share equally from Black & White i.e. 1/10 x A = 1/20

Black’s new share = 5/9 – 1/20 = 91/180

White’s new share = 4/9 – 1/20 = 71/180

Green’s new share = 1/10 x 18/18 = 18/180

**Solution 3:**

Old share = 2:1

New share = 3:1:1

Sacrifice of Keyboard = 2/3 – 3/5 = 1/15

Monitor = 1/3 – 1/5 = 2/15

**Solution 4:**

Let the profit be = 1

Share of new partner = 1/5

Remaining profit = 1 – 1/5 = 4/5

New share of English = 2/3 x 4/5 = 8/15

French = 1/3 x 4/5 = 4/15

History = 1/5 x 3/3 = 3/15

Sacrifice of English = 3/5 – 8/15 = 1/15

French = 2/5 – 4/15 = 2/15

**Solution 5:**

C’s share 1/3rd which will be sacrificed by A and B in 1:2

1/3 x 1/3 = 1/9 and 1/3 x 2/3 = 2/9

A’s new share = 1/3 – 1/9 = 2/9

B’s new share = 2/3 – 2/9 = 4/9

C’s Share = 1/3 x 3/3 = 3/9

**Solution 6:**

L’s new share = 7/10 – 2/7 = 29/70

M’s new share = 3/10 – 1/7 = 11/70

N’s new share = 3/7 x 10/10 = 30/70

**Solution 7:**

A’s new share = 3/5 x A = 3/20 3/5 – 3/20 = 9/20

B’s new share = 2/5 x 1/5 = 2/25 2/5 – 2/25 = 8/25

C’s new share = 3/20 x 2/25 = 23/100 9/20 : 8/25 : 23/100 OR 45:32:23

**Solution 8:**

Vinod’s new share = 3/5 x 1/3 = 3/15

3/5 – 3/15 = 6/15

Shubh’s new share = 2/5 x 1/4 = 2/20

2/5 – 2/20 = 6/20

Swami’s share = 3/15 (given by Vinod)

Chandel’s Share = 2/20 (given by Shubh)

New share = 24:18:12:6 OR 4:3:2:1

**Solution 9:**

Let the profit be = 1

Share of new partner = 1/4

Remaining profit = 1 – 1/4 = 3/4

A’s new share = 1/2 x 3/4 = 3/8

B’s new share = 1/2 x 3/4 = 3/8

C’s new share = 1/4 x 2/2 = 2/8

A’s Sacrifice = 3/5 – 3/8 = 9/40

B’s Sacrifice = 2/5 – 3/8 = 1/40

**Solution 10:**

X’s new share = 7/12 – 1/12 = 6/12

Y’s new share = 5/12 – 1/6 = 3/12

Z’s share = 1/12 + 1/6 = 3/12

New Share = 2:1:1

Sacrificing Share of X = 7/12 – 2/4 = 1/12

Y = 5/12 – 1/4 = 2/12

**Solution 11:**

Old share of A and C = 1:1

New Share = 5:4:3

A’s Sacrifice = 1/2 – 5/12 = 1/12

C’s Sacrifice = 1/2 – 4/12 = 2/12

**Solution 12:**

Let the profit be = 1

Share of Vinod and Sunita = 1/6 + 1/6 = 1/3

Remaining profit = 1 – 1/3 = 2/3

Simran’s new share = 3/5 x 2/3 = 6/15

Kuku’s new share = 2/5 x 2/3 = 4/15

New share = 6/15:4/15:1/6:1/6 OR 12:8:5:5

**Solution 13:**

A’s new share = 4/5 x 1/4 = 4/20

4/5 – 4/20 = 12/20

B’s new share = 1/5 x 1/2 = 1/10

1/5 – 1/10 = 1/10

C’s share = 4/20 + 1/10 = 6/20

12/20: 1/10: 6/20 OR 12:2:6 OR 6:1:3

Sacrifice of A = 4/5 – 6/10 = 2/10 and B = 1/5 – 1/10 = 1/10

**Solution 14:**

Old Share 7 : 3

A’s new share = 7/10 – 1/7 = 39/70

B’s new share = 3/10 x 1/3 = 1/10

Now 3/10 – 1/10 = 2/10

C’s share = 1/7 + 1/10 = 17/70

A = 39/70 B 2/10 i.e. 14/70 just to make the denominator same C 17/70

Sacrifice = A 7/10 – 39/70 = 10/70

B 3/10 – 14/70 = 7/70

**Solution 15:**

Old Share = 2:2 i.e. 1:1

L’s new share = 1/2 – 1/4 = 1/4

M’s new share = 1/2 – 1/8 = 3/8

N’s share = 1/4 + 1/8 = 3/8

New Share = 2 : 3 : 3

Note : L’s share is 1/4 but it is converted to 2/8 just to make the denominator same

**Solution 16:**

X’s new share = 3/5 x 1/2 = 3/10

= 3/5 – 3/10 = 3/10

Y’s new share = 2/5 x 1/2 = 2/10

= 2/5 – 2/10 = 2/10

Z’s new share = 3/10 + 2/10 = 5/10

X’s Sacrifice = 3/5 – 3/10 = 3/10

Y’s Sacrifice = 2/5 – 2/10 = 2/10

**Solution 17:**

Mohan’s new share = 5/9 – 1/9 = 4/9

Rohan 4/9 Sohan 1/9 New share = 4:4:1

**Solution 18:**

A’s new share = 5/8 x 1/20 = 1/32

5/8 – 1/32 = 19/32

B’s new share = 3/8 x 1/24 = 1/64

3/8 – 1/64 = 23/64

C’s share = 1/32 + 1/64 = 3/64

New share = 19/32 : 23:64: 3/64 OR 38: 23:3

**Solution 19:**

Old share = 4:1

New share = 1:1:1 given

Edwin’s Sacrifice = 4/5 – 1/3 = 7/15

Charles’s Gain = 1/5 – 1/3 = 2/15

**Solution 20:**

E’s Share 20% OR 1/5

Let the profit be = 1

Share of new partner = 1/5

Remaining profit = 1 – 1/5 = 4/5

A’s new share = 3/10 x 4/5 = 12/50

B’s new share = 4/10 x 4/5 = 16/50

C’s new share = 2/10 x 4/5 = 8/50

D’s new share = 1/10 x 4/5 = 4/50

E’s new share = 1/5 x 10/10 = 10/50

New share = 12:16:8:4:10 OR 6:8:4:2:5

**Solution 21:**

Let the profit be = 1

Share of new partner = 1/4

Remaining profit = 1 – 1/4 = 3/4

A’s new share = 3/5 x 3/4 = 9/20

B’s new share = 2/5 x 3/4 = 6/20

C = 1/4 x 5/5 = 5/20

New Share = 9:6:5

Now D enters and his share is 1/5

Let the profit be = 1

Share of new partner = 1/5

Remaining profit = 1 – 1/5 = 4/5

New share of A = 9/20 x 4/5 = 36/100

B = 6/20 x 4/5 = 24/100

C = 5/20 x 4/5 = 20/100

D = 1/5 x 20/20 = 20/100

New Share = 36:24:20:20 OR 9:6:5:5

**Solution 22:**

Anita’s new share = 9/14 – 1/12 = 47/84

Tina’s new share = 5/14 – 1/24 = 53/168

Chetan’s share = 1/8 x 21/21 = 21/168

New Share = 47/84: 53:168: 21:168 OR 94:53:21

**Solution 23:**

A’s new share = 3/5 x 1/6 = 3/30

3/5 – 3/30 = 15/30

B’s new share = 2/5 x A = 2/20

2/5 – 2/20 = 6/20

C’s Share = 3/30 + 2/20 = 12/60

New Share = 15/30: 6/20: 12:60 OR 30:18:12 OR 5:3:2

Sacrificing Share: A = 3/5 – 5/10 = 1/10

B = 2/5 – 3/10 = 1/10

**Solution 24:**

Let the profit be = 1

Share of new partner = 1/6

Remaining profit = 1 – 1/6 = 5/6

Simon’s new share = 5/8 x 5/6 = 25/48

Murray’s new share = 3/8 x 5/6 = 15/48

George’s Share = 1/6 x 8/8 = 8/48

No journal entries for premium paid privately.

**Solution 25:**

No entry for premium paid privately

Blair Dr. 4,000

Brent Dr. 3,000

To Goodwill 7,000

(Being existing goodwill written off)

Profit will be distributed by the old partners in 4:3.

P/L A/c Dr. 21,000

To Blair 12,000

To Brent 9,000

**Solution 26:**

Let the profit be = 1

Share of new partner = 1/4

Remaining profit = 1 – 1/4 = 3/4

Paul’s new share = 3/5 x 3/4 = 9/20

Peter’s new share = 2/5 x 3/4 = 6/20

Roy = 1/4 x 5/5 = 5/20

Sacrificing Ratio = Paul = 3/5 – 9/20 = 3/20 and Peter = 2/5 – 6/20 = 2/20

Cash A/c Dr. 20,000

To Premium for goodwill 20,000

(Being premium brought by new partner)

Premium for goodwill Dr. 20,000

To Paul 12,000

To Peter 8,000

(Being premium adjusted)

**Solution 27:**

Old Share = 7:3

New Share = 5:3:2

Sacrificing share = Ronald = 7/10 – 5/10 = 2/10

Sam = 3/10 – 3/10 = Nil

Cash A/c Dr. 20,000

To Premium for goodwill 20,000

(Being premium brought by new partner)

Premium for goodwill Dr. 20,000

To Ronald 20,000

(Being premium adjusted)

**Solution 28:**

X’s new share = 5/9 – 2/9 = 3/9

Y’s new share = 4/9 – 1/9 = 3/9

Z’s share = 1/3 x 3/3 = 3/9

Sacrifice = X = 5/9 – 1/3 = 2/9

Y = 4/9 – 1/3 = 1/9

Cash A/c Dr. 1,500

To Premium for goodwill 1,500

(Being premium brought by new partner)

Premium for goodwill Dr. 1,500

To X 1,000

To Y 500

(Being premium adjusted)

**Solution 29:**

Old share = 5:3:2

New share = 3:2:2:1

Sacrifice/Gain

A = 5/10 – 3/8 = 5/40

B = 3/10 – 2/8 = 2/40

C = 2/10 – 2/8 = 2/40

Bank A/c Dr. 2,05,000

To D’s Capital 1,75,000

To Premium for goodwill 30,000

(Being premium and capital brought by new partner)

Premium for goodwill Dr. 30,000

C’s Capital A/c 12,000 (2,40,000 2/40)

To A’s Capital A/c 30,000

To B’s Capital A/c 12,000

(Being premium adjusted)

**Solution 30:**

Bat’s new share = 3/5 x 1/2 = 3/10

3/5 – 3/10 = 3/10

Ball’s new share = 2/5 x 1/2 = 2/10

2/5 – 2/10 = 2/10

Helmet’s new share = 3/10 + 2/10 =5/10

Sacrifice = Bat = 3/5 – 3/10 = 3/10 and Ball = 2/5 – 2/10 = 2/10

Cash A/c Dr. 30,000

To Premium for goodwill 30,000

(Being premium brought by new partner)

Premium for goodwill Dr. 30,000

To Bat 18,000

To Ball 12,000

(Being premium adjusted)

**Solution 31:**

Let the profit be = 1

New partner’s share = 1/4

Remaining share = 1 – 1/4 = 3/4

Albert’s new share = 1/2 x 3/4 = 3/8

Barry’s new share = 1/2 x 3/4 = 3/8

Craig = 1/4 x 2/2 = 2/8

Sacrifice:

Albert = 3/5 – 3/8 = 9/40

Barry = 2/5 – 3/8 = 1/40

Cash A/c Dr. 40,000

To Premium for goodwill 40,000

(Being premium brought by new partner)

Premium for goodwill Dr. 40,000

To Albert 36,000

To Barry 4,000

(Being premium adjusted)

**Solution 32:**

Old Share = 3:2

New Share = 4:3:1

A’s Sacrifice = 3/5 – 4/8 = 4/40

B’s Sacrifice = 2/5 – 3/8 = 1/40

Cash A/c Dr. 4,000

To Premium for goodwill 4,000

(Being premium brought by new partner)

Premium for goodwill Dr. 4,000

To A’s Current A/c 3,200

To B’s Current A/c 800

(Being premium adjusted)

**Solution 33:**

Old Share = 3:2:1

New Share = 2:2:2:1

Sacrifice/Gain

Mark = 3/6 – 2/7 = 9/42

Murray = 2/6 – 2/7 = 2/42

Fox = 1/6 – 2/7 = 5/42 Gain

Bank/Cash A/c Dr. 6,90,000

To Hero’s Capital 6,00,000

To Premium 90,000

(Being capital and premium brought by new partner)

Premium Dr. 90,000 Fox’s Capital A/c 75,000

To Mark’s Capital A/c 1,35,000

To Murray’s Capital A/c 30,000

90,000 + 75,000 in 9:2

Total goodwill = 90,000 x 7/1 = 6,30,000

Fox’s Share = 6,30,000 x 5/42 = 75,000

**Solution 34:**

Old Share = 5:2

New Share = 2:3:3

Sacrifice/Gain

A = 5/7 – 2/8 = 26/56

B = 2/7 – 3/8 = 5/56

Bank/Cash A/c Dr. 5,10,000

To Premium 2,10,000

To C’s Capital A/c 3,00,000

Premium Dr. 2,10,000

B’s Capital A/c 50,000

To A’s Capital A/c 2,60,000

Total capital of firm = 2,10,000 x 8/3 = 5,60,000

B’s share = 5,60,000 x 5/56 = 50,000

**Solution 35:**

Old Share = 3:1

New Share = 1:1:1

Sacrifice/Gain

A = 3/4 – 1/3 = 5/12

B = 1/4 – 1/3 = 1/12 Gain

Bank/Cash A/c Dr. 1,60,000

To C’s Capital A/c 1,00,000

To Premium 60,000

Premium Dr. 60,000

B’s Capital A/c 15,000

To A’s Capital A/c 75,000

Total goodwill of the firm = 60,000 x 3/1 = 1,80,000

B’s Share = 1,80,000 x 1/12 = 15,000

**Solution 36:**

Old Share = 3:2

New Share = 5:3:2

Sacrifice:

A = 3/5 – 5/10 = 1/10

B = 2/5 – 3/10 = 1/10

Bank/Cash A/c Dr. 40,000

To C’s Capital A/c 30,000

To Premium 10,000

Premium Dr. 10,000

To A’s Capital A/c 5,000

To B’s Capital A/c 5,000

A’s Capital A/c Dr. 1,800

B’s Capital A/c Dr. 1,200

To Goodwill 3,000

**Solution 37:**

Old Share = 3:2

C’s share 3/10 which he acquires in 2:1

i.e. 3/10 x 2/3 = 6/30

3/10 x1/3 = 3/30

A’s new share = 3/5 – 6/30 = 12/30

B’s new share = 2/5 – 3/30 = 9/30

C’s Share = 3/10 x 3/3 = 9/30

New Share = 12:9:9 OR 4:3:3

Sacrifice = A = 3/5 – 4/10 = 2/10

B = 2/5 – 3/10 = 1/10

Bank/Cash A/c Dr. 3,000

To Premium fog goodwill 3,000

Premium Dr. 3,000

To A’s Capital A/c 2,000

To B’s Capital A/c 1,000

A’s Capital A/c Dr. 1,200

B’s Capital A/c Dr. 8000

To Goodwill 2,000

**Solution 38:**

Old Share = 3:2

New Share = 3:3:2

Sacrifice = A = 3/5 – 3/8 = 9/40

B = 2/5 – 3/8 = 1/40

Bank/Cash A/c Dr. 1,000

To Premium 1,000

Premium Dr. 1,000

To A’s Capital A/c 900

To B’s Capital A/c 100

A’s Capital A/c Dr. 600

B’s Capital A/c Dr. 400

To Goodwill 1,000

**Solution 39:**

Old Share = 3:1

New Share = 1:1:1

Sacrifice/Gain

Rich = 3/4 – 1/3 = 5/12 sacrifice

Poor = 1/4 – 1/3 = 1/12 Gain

Cash A/c Dr. 25,000

Furniture Dr. 45,000

Machinery Dr. 50,000

To Premium 1,20,000

Premium Dr. 1,20,000

Poor’s Capital A/c 30,000

To Rich 1,50,000

Poor’s share = 1,20,000 x 3/1 = 3,60,000 x 1/12 = 30,000

**Solution 40:**

Old Share = 3:2

New Share = 5:5:3

Sacrifice/Gain

Koyal = 3/5 – 5/13 = 14/65

Goyal = 2/5 – 5/13 = 1/65

Stock Dr. 20,000

Debtors Dr. 30,000

Land Dr. 50,000

Plant & Mach. Dr. 30,000

To Premium 60,000

To Royal’s Capital A/c 70,000

Premium Dr. 60,000

To Koyal 56,000

To Goyal 4,000

**Solution 41:**

David’s share = 3/13

Remaining Share = 1 – 3/13 = 10/13

Jack’s new share = 3/5 x 10/13 = 30/65

James new share = 2/5 x 10/13 = 20/65

Furniture 45,000

Machinery 35,000

Stock 30,000

Debtors 20,000

To David’s Capital A/c 70,000

To Premium 60,000

Premium Dr. 60,000

To Jack 36,000

To James 24,000

**Solution 42:**

Let the profit be = 1

New partner’s share = 1/10

Remaining profit = 1 – 1/10 = 9/10

Tom’s new share = 3/4 x 9/10 = 27/40

Josh’s new share = 1/4 x 9/10 = 9/40

Max’s new share = 1/10 x 4/4 = 4/40

Sacrifice = Tom = 3/4 – 27/40 = 3/40

Josh = 1/4 – 9/40 = 1/40

Stock 40,000

Land & Building 3,00,000

Plant & Mach. 2,60,000

To Max’s Capital A/c 4,00,000

To Premium (Bal. fig.) 2,00,000

Premium Dr. 2,00,000

To Tom’s Capital A/c 1,50,000

To Josh’s Capital A/c 50,000

**Solution 43:**

Old Share = 7:3

New Share = 5:2:3

Sacrifice/Gain

Thomas = 7/10 – 5/10 = 2/10

Daniel = 3/10 – 2/10 = 1/10

Bank/Cash Dr. 12,000

To Premium for goodwill 12,000

Premium Dr. 12,000

To Thomas 8,000

To Daniel 4,000

Thomas 800

Daniel 400

To Cash 1,200

**Solution 44:**

Old Share = 3:2

New Share = 3:3:2

Sacrificing Ratio = Vinayak = 3/5 – 3/8 = 9/40

Sahee = 2/5 – 3/8 = 1/40

Cash A/c Dr. 20,000

To Premium 20,000

Premium Dr. 20,000

To Vinayak 18,000

To Sahee 2,000

Vinayak Dr. 18,000

Sahee Dr. 2,000

To Cash 20,000

Vinayak Dr. 2,400

Sahee 1,600

To Goodwill 4,000

**Solution 45:**

Old Share = 7.5

New Share = 1:1:2

Sacrifice = Lagan = 7/12 – 1/4 = 4/12 and Mayank 5/12 – 1/4 = 2/12

Cash A/c Dr. 16,000

To Premium 6,000

To Abhit 10,000

Premium Dr. 6,000

To Lagan 4,000

To Mayank 2,000

Lagan Dr. 4,000

Mayank Dr. 2,000

To Cash 6,000

**Solution 46:**

A’s new share = 5/8 – 2/10 = 17/40

B’s new share = 3/8 – 1/10 = 11/40

C’s share = 3/10 x 4/4 = 12/40

Sacrifice = A = 5/8 – 17/40 = 8/40 and B = 3/8 – 11/40 = 4/40

Cash A/c Dr. 3,000

To Premium 3,000

Premium 3,000

To A 2,000

To B 1,000

C’s Current A/c 4,800

To A 3,200

To B 1,600

**Solution 47:**

Let the profit be = 1

New partner’s share = 1/4

Remaining profit = 1 – 1/4 = 3/4

A’s new share = 1/2 x 3/4 = 3/8

B’s new share = 1/2 x 3/4 = 3/8

C’s new share = 1/4 x 2/2 = 2/8

Sacrifice: A = 1/2 – 3/8 = 1/8

B = 1/2 – 3/8 = 1/8

Cash A/c Dr. 1,000

To Premium for goodwill 1,000

Premium for goodwill Dr. 1,000

To A 500

To B 500

**Solution 48:**

Old Share = 3:2

New Share = 4:3:2 given

Sacrifice: Louis = 3/5 – 4/9 = 7/45

Jack = 2/5 – 3/9 = 3/45

Cash A/c Dr. 45,000

To Billy’s Capital A/c 40,000

To Premium for goodwill 5,000

Premium for goodwill Dr. 5,000

To Louis’s Capital A/c 3,500

To Jack’s Capital A/c 1,500

Billy’s Current A/c Dr. 3,000

To Louis’s Capital A/c 2,100

To Jack’s Capital A/c 900

**Solution 49:**

Old Share = 5:3

New Share = 4:3:2

Sacrifice: X = 5/8 – 4/9 = 13/72

Y = 3/8 -3/9 = 3/72

Cash A/c Dr. 1,00,000

To Z’s Capital A/c 1,00,000

Z’s Current A/c Dr. 40,000

To X’s Capital A/c 32,500

To Y’s Capital A/c 7,500

X’s Capital A/c Dr. 1,50,000

Y’s Capital A/c Dr. 90,000

To Goodwill 2,40,000

**Solution 50:**

Let the profit be = 1

New partner’s share = 1/4

Remaining Share = 1 – 1/4 = 3/4

A’s new share = 3/5 x 3/4 = 9/20

B’s new share = 2/5 x 3/4 = 6/20

C’s Share = 1/4 x 5/5 = 5/20

Sacrifice: A = 3/5 – 9/20 = 3/20

B = 2/5 – 6/20 = 2/20

C’s Current A/c Dr. 5,250

To A’s Capital A/c 3,150

To B’s Capital A/c 2,100

**Solution 51:**

Let the profit be = 1

New partner’s share = 1/5

Remaining Share = 1 – 1/5 = 4/5

Pandey’s new share = 1/4 x 4/5 = 4/20

Vinayak’s new share = 3/4 x 4/5 = 12/20

Raghu’s Share = 1/5 x 4/4 = 4/20

New Share = 1:3:1

Sacrifice: Pandey = 1/4 – 1/5 = 1/20

Vinayak = 3/4 – 12/20 = 3/20

Raghu’s Current A/c Dr. 20,000

To Pandey’s Capital A/c 5,000

To Raghu’s Capital A/c 15,000

**Solution 52:**

Old Share = 5:3

New Share = 4:3:2

Sacrifice: William = 5/8 – 4/9 = 13/72

Roy = 3/8 – 3/9 = 3/72

Cash A/c Dr. 1,00,000

To Edward’s Capital A/c 1,00,000

Edward’s Current A/c Dr. 40,000

To William’s Capital A/c 32,500

To Roy’s Capital A/c 7,500

William’s Capital A/c Dr. 1,50,000

Roy’s Capital A/c Dr. 90,000

To Goodwill 2,40,000

**Solution 53:**

X’s new share = 5/9 – 2/9 = 3/9

Y’s new share = 4/9 – 1/9 = 3/9

Z’s share = 1/3 x 3/3 = 3/9

New Share = 1:1:1

Sacrifice: X = 5/9 – 3/9 = 2/9

Y = 4/9 – 3/9 = 1/9

Cash A/c Dr. 2,00,000

To Z’s Capital A/c 2,00,000

Z’s Current A/c Dr. 60,000

To X’s Capital A/c 40,000

To Y’s Capital A/c 20,000

**Solution 54:**

Let the profit be = 1

New partner’s share = 1/4

Remaining Share = 1 – 1/4 = 3/4

A’s new share = 3/5 x 3/4 = 9/20

B’s new share = 2/5 x 3/4 = 6/20

C’s Share = 1/4 x 5/5 = 5/20

Sacrifice: A = 3/5 – 9/20 = 3/20

B = 2/5 – 6/20 = 2/20

C’s Current A/c Dr. 21,000

To A’s Capital A/c 12,600

To B’s Capital A/c 8,400

**Solution 55:**

Let the profit be = 1

New partner’s share = 1/5

Remaining Share = 1 – 1/5 = 4/5

A’s new share = 3/5 x 4/5 = 12/25

B’s new share = 2/5 x 4/5 = 8/25

C’s Share = 1/5 x 5/5 = 5/25

Sacrifice: A = 3/5 – 12/25 = 3/25

B = 2/5 – 8/25 = 2/25

Hidden Goodwill = Total Capital 1,80,000 x 5/1 = 9,00,000

Combined Capital = 2,40,000 + 1,50,000 + 1,80,000 = 5,70,000

Goodwill 3,30,000 = Total Capital 9,00,000 – Combined Capital 5,70,000

C’s share = 3,30,000 x 1/5 = 66,000

Cash A/c Dr. 2,46,000

To Premium for goodwill 66,000

To C’s Capital A/c 1,80,000

Premium for goodwill Dr. 66,000

To A 39,600

To B 26,400

**Solution 56:**

Old Share = 1:1

Bhandari’s Share = 1/5

Let the Profit be = 1

Remaining share = 1 – 1/5 = 4/5

Sushant’s new share = 1/2 x 4/5 = 4/10

Ranauq’s new share = 1/2 x 4/5 = 4/10

Bhandari = 1/5 x 2/2 = 2/10

New Share = 2:2:1

Sacrifice: Sushant = 1/2 – 2/5 = 1/10

Ranauq = 1/4 x 2/5 = 1/10

Sacrifice 1:1

Hidden Goodwill = Total Capital = 16,000 x 5/1 = 80,000

Combined capital = 26,000 + 18,000 + 16,000 = 60,000

Goodwill = 80,000 – 60,000 = 20,000

Bhandari’s share = 20,000 x 1/5= 4,000

Cash A/c Dr. 20,000

To Bhandari’s Capital A/c 16,000

To Premium of goodwill 4,000

Premium for goodwill Dr. 4,000

To Sushant’s Capital A/c 2,000

To Ranauq’s Capital A/c 2,000

**Solution 57:**

Arjun’s share = 1/5 which he acquires equally from Parag and Digvijay

i.e. 1/5 x 1/2 = 1/10

Parag’s new share = 7/10 – 1/10 = 6/10

Digvijay = 3/10 – 1/10 = 2/10

Arjun = 1/5 x 2/2 = 2/10

New Share = 6:2:2 OR 3:1:1

Sacrifice: Parag = 7/10 – 3/5 = 1/10

Digvijay = 3/10 – 1/5 = 1/10

Sacrifice = 1:1

Hidden Goodwill = Total Capital = 25,000 x 5/1 = 1,25,000

Combined capital = 40,000 + 30,000 + 25,000 = 95,000

Goodwill = 1,25,000 – 95,000 = 30,000 and Arjun’s share 30,000 x 1/5 = 6,000

Cash A/c Dr. 31,000

To Arjun’s Capital A/c 25,000

To Premium for goodwill 6,000

Premium for goodwill Dr. 6,000

To Parag’s Capital A/c 3,000

To Digvijay’s Capital A/c 3,000

**Solution 58:**

Let the profit be = 1

New partner’s share = A

Remaining profit = 1 -1/4 = 3/4

A’s new share = 1/2 x 3/4 = 3/8

B’s new share = 1/2 x 3/4 = 3/8

C = 1/4 x 2/2 = 2/8

Sacrifice = A = 1/2 – 3/8 = 1/8

B = 1/2 – 3/8 = 1/8

Hidden Goodwill = Total Capital = 1,40,000 x 4/1 = 5,60,000

Combined Capital = 1,20,000 + 2,40,000 + 1,40,000 = 5,00,000

Goodwill = 5,60,000 – 5,00,000 = 60,000 C’s Share = 60,000 x 1/4 = 15,000

Cash A/c Dr. 1,55,000

To Premium for goodwill 15,000

To C’s Capital A/c 1,40,000

Premium for goodwill Dr. 15,000

To A’s Capital A/c 7,500

To B’s Capital A/c 7,500

**Solution 59:**

General Reserve Dr. 32,000

To Uday’s Capital A/c 20,000

To Bharat’s Capital A/c 12,000

Uday’s Capital A/c 30,000

Bharat’s Capital A/c 18,000

To P/L A/c 48,000

**Solution 60:**

Old share = 4:1

New Share = 4:2:3

Sacrifice = Ram = 4/5 – 4/9 = 16/25

Mohan = 1/5 – 2/9 = 1/45 Gain

General Reserve Dr. 50,000 (divided in old ratio)

To Ram’s Capital A/c 40,000

To Mohan’s Capital A/c 10,000

Ram’s Capital A/c Dr. 12,800

Mohan’s Capital A/c Dr. 3,200

To P/L A/c 16,000

Cash A/c Dr. 30,000

To Premium for goodwill 30,000

Premium for goodwill Dr. 30,000

Mohan’s Capital A/c 2,000

To Ram’s Capital A/c 32,000

Total goodwill of firm = 30,000 x 3/1 = 90,000

**Solution 61:**

**Solution 62:**

CASE – 1: Hidden Goodwill

Hidden Goodwill = Total Capital 10,000 x 5/1 = 50,000

Combined capital = 5,000 + 2,500 + 10,000 = 17,500

Goodwill = 50,000 – 17,500 = 32,500

C’s Share = 32,500 x 1/5 = 6,500

CASE – 2

Goodwill = Total Capital 50,000 – Combined capital 27,500 = 22,500

C’s Share = 22,500 x 1/5 = 4,500

**Solution 63:**

Old Share = 5:3

Henry’s share = 1/5

Let the profit be = 1

Remaining share = 1 – 1/5 = 4/5

Anthony’s share = 5/8 x 4/5 = 20/40

Justin’s share = 3/8 – 4/5 = 12/40

Henry = 1/5 x 8/8 = 8/40

New Share = 20:12:8 OR 5:3:2

Sacrifice = Anthony = 5/8 – 5/10 = 5/40

Justin = 3/8 – 3/10 = 3/40

**Solution 64:**

New Share = 12:8:5

Sacrifice = 3:2

**Solution 65:**

New Share = 9:6:5

Sacrifice = 3:2

**Solution 66:**

New Share = 2:1:1

Sacrifice = 2:1

**Solution 67:**

New Share = 3:2:1

Sacrifice = 3:2

**Solution 68:**

New Ratio = 21:14:5

Sacrifice = 3:2

**Solution 69:**

New Ratio 10 : 15 : 25 : 10 i.e. 2 : 3 : 5 : 2

Sacrifice = 2 : 3 : 5

**Solution 70:**

New Ratio = 12 : 8 : 5

Sacrifice = 3:2

Hidden Goodwill = Total Capital = 30,000 x 5/1 = 1,50,000

Combined Capital = 30,000 + 20,000 + 30,000 = 80,000

Hidden Goodwill = 1,50,000 – 80,000 = 70,000

Pulkit’s Share = 70,000 x 1/5 = 14,000

**Solution 71:**

New Share = 5:3:2

Sacrifice = 1:1

Total capital 1,00,000 x 5/1 = 5,00,000

Combined capital = 1,47,900 + 73,600 + 1,00,000 = 3,21,500

Hidden Goodwill = 5,00,000 – 3,21,500 = 1,78,500

Paul’s share = 1,78,500 x 2/10 = 35,700

**Solution 72:**

CASE – 1

New Share = 4 : 3 : 1

Sacrifice = 4 : 1

Total capital = 5,000 x 8/1 = 40,000

Combined capital = 8,500 + 6,500 + 5,000 = 20,000

Hidden goodwill = Total capital 40,000 – combined capital 20,000 = 20,000

C’s share = 20,000 x 1/8 = 2,500

CASE – 2

Total Capital = 5,000 x 8/1 = 40,000

Combined capital = 10,000 + 7,500 + 5,000 = 22,500

Hidden goodwill = 40,000 – 22,500 = 17,500

C’s share = 17,500 x 1/8 = 2,188

Cash A/c Dr. 7,188

To C’s Capital A/c 5,000

To Premium for goodwill 2,188

Premium for goodwill Dr. 2,188

To A’s Current A/c 1,750

To B’s Current A/c 438

**Solution 73:**

New Share = 3:3:2

Sacrifice = Only M is sacrificing

Goodwill = Super Profit 20,000 – 12,000 = 8,000 x 4 = 32,000

N’s Share = 32,000 x 1/4 = 8,000

**Solution 74:**

New Share = 2:1:1

Sacrifice = 2:1

**Solution 75:**

New Share = 3:1:1

Sacrifice = 3:1

**Solution 76:**

New Share = 3:1:1

Sacrifice = 3:1

**Solution 77:**

New Share = 12:8:5

Sacrifice = 3:2

**Solution 78:**

New Ratio = 7 : 5 : 3 and Sacrifice = 19 : 5

**Solution 79:**

New Share = 3:2:1

Sacrifice = Only A is sacrificing

**Solution 80:**

New Ratio = 3 : 3: 2

Sacrifice = 9 : 1

**Solution 81:**

New Share = 3:1:1 and Sacrifice = 3:1

**Solution 82:**

New Share = 3:1:1 and Sacrifice 3:1

**Solution 83:**

New Share = 6:5:3:2 and sacrifice 6:5:3

Total capital = 17,700 x 1/8 = 1,41,600

**Solution 84:**

New Share = 5:3:2 and sacrifice = 1:1

**Solution 85:**

New Share = 9:6:5

Sacrifice = 3:2

**Solution 86:**

New Share = 9:6:3:2 and Sacrifice = 3:2:1

**Solution 87:**

New share = 9:3:4 and 3:1

**Solution 88:**

New share = 9:6:5 and sacrifice = 3:2

**Solution 89:**

New Share = 3:2:1 and Sacrifice = 3:2

Total capital = 20,000 x 6/1 = 1,20,000

**Solution 90:**

New Share = 5:3:4 and sacrifice = 5:3

Total capital = 10,000 x 3/1 = 30,000

**Solution 91:**

New Share = 4:3:1 and Sacrifice 4:3

Total capital = 1,68,000 + 1,26,000 = 2,94,000 x 8/7 = 3,36,000 x 1/8 = 42,000

**Solution 92:**

New Share = 6:4:5 and Sacrifice 3:2

**Solution 93:**

New Share 3:2:1 and Sacrifice 3:2

**Solution 94:**

New share = 9:6:5 and Sacrifice 1:1

**Solution 95:**

New share = 3:3:2

Sacrifice = 1:1

Cash A/c Dr. 6,000

To Anna’s Capital A/c 6,000

(Being Capital brought by Anna)

Anna’s Current A/c Dr. 1,500

To Garry’s Capital A/c 750

To Marry’s Capital A/c 750

(Being premium for goodwill adjusted)

**Solution 96:**

New Share 12 : 8 : 5 and Sacrifice 3:2

**Solution 97:**

New Share 3:3:2 and sacrifice 9:1

**Solution 98:**

New Share 9:6:5 and sacrifice 3:2

**Solution 99:**

New share = 3:3:2 and sacrifice 9:1

**Solution 100:**

New Share = 1:1:1 and sacrifice 4:1

Capital employed = 3,00,000 given

Normal profit = 3,00,000 x 10/100 = 30,000

Super profit = Average Profit – Normal profit

15,000 = 45,000 – 30,000

Goodwill = 15,000 x 2 = 30,000 and Peter’s share = 30,000 x 1/3 = 10,000

### Brilliant Problems

**Solution 1:**

Old Share = 3:2 and New Share = 3:3:2

Sacrifice = Dheeraj 3/5 – 3/8 = 9/40 and Nikhil = 2/5 – 3/8 = 1/40

**Solution 2:**

Let the profit be = 1

Remaining Share = 1- 1/5 = 4/5

A = 7/10 x 4/5 = 28/50

B = 3/10 x 4/5 = 12/50

C = 1/5 x 6/6 = 6/30

Sacrifice = 7 : 3

**Solution 3:**

Old Share = 2:1

New Share = 3 : 2 : 1

Sacrifice:

A = 2/3 – 3/6 = 1/6

B = 1/3 – 2/6 = Nil

**Solution 4:**

New Share 3:3:2 and sacrifice 9:1

**Solution 5:**

New Share = 3:1:1 and sacrifice 3:1

**Solution 6:**

Old Share 3:2:1 and new share 1:1:1,

Share of Swami 1/5

Let the profit be = 1

Remaining profit = 1 – 1/5 = 4/5

Vinod’s new share = 1/3 x 4/5 = 4/15 = 4/15

Shubh = 1/3 x 4/5 = 4/15

Gaurav = 1/3 x4/5 = 4/15

Swami = 1/5 x 3/3 = 3/15

New Share after admission of Swami = 4:4:4:3

Sacrifice = Vinod = 3/6 – 4/15 = 7/30 and Shubh = 2/6 – 4/15 = 2/30

Gain of Gaurav = 1/6 – 4/15 = 3/30

Total capital 2,25,000 x 5/1 = 11,25,000

Combined capital = 2,70,000 + 2,40,000 + 2,10,000 + 2,25,000 = 9,45,000

Goodwill = 11,25,000 – 9,45,000 = 1,80,000

Swami’s share = 1,80,000 x 1/5 = 36,000

Swami’s Current A/c Dr. 36,000

Gaurav’s Current A/c Dr. 18,000

To Vinod’s Current A/c 42,000

To Shubh’s Current A/c 12,000

**Solution 7:**

New Share = 2:2:1 and Sacrifice 1:1

**Solution 8:**

New share 1:1:1 and Sacrifice of A 5/12 and Gain of B = 1/12

B’s gain of goodwill = 30,000 x 3/1 = 90,000 x 1/12 = 7,500

Total Capital = 75,000 x 3/1 = 2,25,000

**Solution 9:**

New Share 8:4:3 and Sacrifice 2:1

Goodwill = 20,000 + 15,000 + 22,000 = 57,000/3 = 19,000 x 2 = 38,000

C’s share = 38,000 x 1/5 = 7,600

**Solution 10:**

New Share = 1:1:1 and Sacrifice of A and B 1:1 but C’s is gainer 2/24

**Solution 11:**

New Share 5:3:2 and sacrifice 1:1

Total capital = 40,000 x 5/1 = 2,00,000

**Solution 12:**

Let the profit be = 1

New partner’s share = 1/5

Remaining share = 1 – 1/5 = 4/5

A’s new share = 1/2 x 4/5 = 4/10

B’s new share = 1/2 x 4/5 = 4/10

C’s new share = 1/5 x 2/2 = 2/10

New Share = 2:2:1

Sacrifice/Gain A = 1/3 – 2/5 = 1/15 Gain

B = 1/3 – 2/5 = 1/15 Gain

C = 1/3 – 1/5 = 2/15

A’s Capital A/c Dr. 2,000

B’s Capital A/c Dr. 2,000

To C’s Capital A/c 4,000

**Solution 13:**

New Share = 3:1:1 and Sacrifice 3:1

**Revaluation Account**

**Solution 14:**

New Share = 1:1:1 and only X is sacrificing 1/3

Total Capital = 10,800 + 7,000 = 17,800 x 3/2 = 26,700 x 1/3 = 8,900

**Solution 15:**

New Share 44:14:5 and sacrifice 11:4

**Solution 16:**

New share 1:1:1 and Sacrifice of A and B is 1:1 and Gain of C 2/24

**Solution 17:**

New Share 5:3:2 and sacrifice 5:3

Total Capital = 90,000 + 70,000 = 1,60,000 x 5/4 = 2,00,000

2,00,000 x 1/5 = 40,000 George’s capital

Cash A/c Dr. 48,000

To George’s Capital 40,000

To Premium for goodwill 8,000

Premium for goodwill Dr. 8,000

To Vinod’s Capital A/c 5,000

To Suraj’s Capital A/c 3,000

**Solution 18:**

New Share 2:1:1 and sacrifice 2:1

**Solution 19:**

New Share 3:2:1 and sacrifice 3:2