Download Free PDF of Class 12 Accountancy TS Grewal Solutions Volume 1 Chapter 5 - Admission of a Partner
FAQs on TS Grewal Solutions Class 12: Chapter 5 Overview
1. How do the TS Grewal Solutions for Class 12 Chapter 5 assist in mastering the topic 'Admission of a Partner'?
The TS Grewal Solutions for Class 12 Chapter 5 provide a comprehensive, step-by-step approach to solving all problems related to the admission of a partner. They clarify complex calculations and accounting treatments as per the CBSE 2025-26 syllabus, covering everything from the calculation of new profit-sharing ratios to the final preparation of the Balance Sheet. This helps students build a strong foundational understanding and apply concepts correctly in exams.
2. What is the step-by-step method shown in the solutions for calculating the New Profit-Sharing Ratio and Sacrificing Ratio?
The solutions demonstrate a clear method for these calculations. The typical steps are:
- Step 1: Identify the old profit-sharing ratio of the existing partners.
- Step 2: Note the share of profit given to the new partner.
- Step 3: Calculate the remaining share of the firm's profit (1 - New Partner's Share).
- Step 4: Distribute this remaining share among the old partners in their old profit-sharing ratio to find their new individual shares.
- Step 5: The Sacrificing Ratio is then calculated using the formula: Old Ratio - New Ratio for each of the old partners.
3. How do the Chapter 5 solutions explain the accounting treatment for Goodwill upon a new partner's admission?
The solutions detail the accounting treatment for Goodwill based on different scenarios. When the new partner brings their share of goodwill in cash (premium), the solutions show the journal entries for crediting this amount to the old partners' capital accounts in their sacrificing ratio. If the new partner cannot bring cash, the solutions illustrate how to raise and write off the goodwill account or adjust it through the new partner's current account, following proper accounting standards.
4. Why is preparing a Revaluation Account essential during a partner's admission, and how do the TS Grewal solutions illustrate its preparation?
A Revaluation Account is essential to record the changes in the value of a firm's assets and liabilities at the time of admission. This ensures that the new partner is not affected by past gains or losses. The TS Grewal solutions illustrate its preparation by:
- Debiting the Revaluation Account for any decrease in asset value or increase in liability.
- Crediting the Revaluation Account for any increase in asset value or decrease in liability.
- Finally, showing the transfer of the resulting profit or loss to the old partners' capital accounts in their old profit-sharing ratio.
5. What are the common mistakes students make while adjusting for accumulated profits, losses, and reserves, and how do the solutions help prevent them?
A common mistake is distributing accumulated profits, losses, and reserves (like General Reserve) among all partners, including the new one. The TS Grewal solutions clearly demonstrate that these items belong to the old partners and must be distributed only among them in their old profit-sharing ratio before the new partner's admission is finalised. The solutions provide specific journal entries for these adjustments, preventing such errors.
6. How do the TS Grewal solutions demonstrate the adjustment of capital accounts on the admission of a new partner?
The solutions cover various methods for capital adjustment. For instance, if the new partner's capital is the base, the solutions show how to calculate the total capital of the new firm and then determine the required capital for each old partner in the new profit-sharing ratio. It then illustrates the journal entries for bringing in a deficit or withdrawing a surplus through cash or current accounts to settle the differences.
7. Are the problem-solving methods in TS Grewal Solutions for Class 12 Chapter 5 aligned with the latest CBSE 2025-26 guidelines?
Yes, all the methods, accounting treatments, and formats used in the TS Grewal Solutions for Class 12 Chapter 5 are fully updated and aligned with the latest CBSE curriculum and guidelines for the 2025-26 academic session. They follow the prescribed format for journal entries, ledger accounts like the Revaluation Account and Partners' Capital Accounts, and the final Balance Sheet.
