Question

Shikha, Shweta and Manisha were partners sharing profits and losses in the ratio of 5 : 3 : 2. They admitted Pooja into partnership for a 25% share. Shikha, Shweta and Manisha decided to share future profits and losses equally. Pooja brings in Capital of ₹ 8,00,000 and ₹ 1,50,000 out of her goodwill share of ₹ 2,50,000. Pass necessary entries at the time of Pooja’s admission.

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Bank A/c   ...Dr.		9,50,000
	To Pooja’s Capital A/c			8,00,000
	To Premium for Goodwill A/c			1,50,000
	(Capital and premium brought in cash)
	Premium for Goodwill A/c   ...Dr.		1,50,000
	To Shikha’s Capital A/c			1,25,000
	To Shweta’s Capital A/c			25,000
	(Premium divided among old partners in sacrificing ratio)
	Pooja’s Current A/c   ...Dr.		1,00,000
	Manisha’s Capital A/c   ...Dr.		50,000
	To Shikha’s Capital A/c			1,25,000
	To Shweta’s Capital A/c			25,000
	(The amount of goodwill transferred from new partner and gaining partner to sacrificing partners)

Working Note:

Calculation of Sacrificing Ratio:

Old Ratio =  5 : 3 : 2

Pooja’s Shar = `1/4`

Remaining = `1 - 1/4`

= `3/4` To be shared equally

Shikha’s New Share = `3/4 xx 1/3`

= `3/12`

= `1/4`

Shikha’s Sacrifice = `5/10 - 1/4`

= `(5 xx 2)/(10 xx 2) - (1 xx 5)/(4 xx 5)`

= `10/20 - 5/20`

= `(10 - 5)/20`

= `5/20`

Shweta’s New Share = `3/4 xx 1/3`

= `3/12`

= `1/4`

Shweta’s Sacrifice = `3/10 - 1/4`

= `(3 xx 2)/(10 xx 2) - (1 xx 5)/(4 xx 5)`

= `6/20 - 5/20`

= `(6 - 5)/20`

= `1/20`

Manisha’s New Share = `3/4 xx 1/3`

= `3/12`

= `1/4`

Manisha’s Sacrifice = `2/10 - 1/4`

= `(2 xx 2)/(10 xx 2) - (1 xx 5)/(4 xx 5)`

= `4/20 - 5/20`

= `(4 - 5)/20`

= `- 1/20` (Gain)

Sacrificing Ratio of Shikha and Shweta = `5/40 : 1/40` or 5 : 1