TS Grewal Solutions for Class 12 Accountancy Vol 1 Chapter 6
TS Grewal Solutions for Class 12 Accountancy Chapter 6 – Retirement/Death of a Partner is a fundamental concept to be learned by the students. Here, we have provided TS Grewal Accountancy solutions for class 12 in a simple and a step by step method, which is beneficial for the students to score well in their upcoming board exams.
Class 12 TS Grewal Solutions Accountancy Vol 1 Chapter 6:-Download PDF Here
Board | CBSE |
Class | Class 12 |
Subject | Accountancy |
Chapter | Chapter 6 |
Chapter Name | Retirement/Death of a Partner |
Number of questions solved | 06 |
Category | TS Grewal |
Chapter 6 – Retirement/Death of a Partner explains the below-mentioned concepts:
- Adjustment for Revaluation of Assets and Liabilities
- New profit sharing and gaining ratio
- Adjustment of the partners capital and death of a partner
- Treatment of Goodwill
TS Grewal Solutions for Class 12 Accountancy Chapter 6 – Retirement/Death of a Partner
Question 1
- X, Y and Z were partners, sharing profits in the ratio of 1/2, 2/5 and 1/10. Now, find the new profit sharing ratio of the remaining partners, if –
- X retires
- Y retires
- Z retires
02. P, Q and R are partners sharing profits in the ratio of 5:4:1. Now, find the new profit sharing ratio of the remaining partners, if –
- P retires
- Q retires
- R retires
Solution:
- Step 1 – Find out the ratio in a simple figure by taking LCM. the ratio is 1/2:2/5:1/10 can be restated as 5:4:1 (considering 10 as LCM)
Step 2 – Calculate the new profit sharing ratio of the remaining partners by striking out the share of the outgoing partner. Hence,
- If X retires, then the new profit sharing ratio between Y and Z = 4:1 i.e., 4/1:1/5
- If Y retires, then the new profit sharing ratio between X and Z = 6:1 i.e, 5/6:1/6
- If Z retires, then the new profit sharing ratio between X and Y = 5:4 i.e, 5/9:4/9
- Profit sharing ratio between P, Q and R = 5:4:1
- If P retires, then the new profit sharing ratio between Q and R = 4:1 = 4/5:1/5
- If Q retires, then the new profit sharing ratio between P and R = 5:1 = 5/6:1/6
- If R retires, then the new profit sharing ratio between P and Q = 5:4 = 5/9:4/9
Question 2
D, E and F are partners sharing profits in the ratio of 1/2, 3/10 and 1/5. E retires from the firm and D & F agree to share the future profits in the ratio of 3:2. Compute the gaining ratio.
Solution:
A C
- Their new shares 3/5 2/5
- Their old shares 1/2 1/5
- Gain of a partner ( new share-old share) 3/5-1/2=1/10 2/5-1/5=2/10
Hence, gaining ratio of A and C = 1/10:2/10 = 1:2
Question 3
Amar, Akbar and Antony are partners sharing profits in the ratio of 3:2:1. Amar retires from the firm and it is ascertained that the profit sharing ratio between Akbar and Antony will be the same as existing between Amar and Akbar. Compute New ratio and Gaining ratio.
Solution:
The ratio between Amar and Akbar = 3:2. The new ratio between Akbar and Antony also will be 3:2.
Gaining Ratio =
The gain of a partner = New share – Old share
Akbarâ€™s share = 3/5 – 2/6 = 8/30
Antonyâ€™s share = 2/5 – 1/6 = 7/30
Hence, the gaining ratio of Akbar and Antony = 8/30 : 7/30
= 8:7
Question 4
Rahul, Sachin and Sourav were partners sharing profits in the ratio of 3:2:1. Sourav retired from the firm on 1st April 2018, on which date goodwill of the enterprise was valued at â‚¹. 2,50,000/-. Rahul and Sachin decided to share the future profits equally from the date. Pass necessary journal entries giving effect to the goodwill on Souravâ€™s retirement raising goodwill at its current value.
Solution:
JOURNAL ENTRIES |
|||||
Date | Particulars | L.F. | Debit | Credit | |
April 1, 2018 | Goodwill A/c | Dr. | 2,50,000 | ||
To Rahulâ€™s A/c | 1,25,000 | ||||
To Sachinâ€™s A/c | 83,333 | ||||
To Souravâ€™s A/c
(Being the goodwill a/c debited with the current value of goodwill) |
41,667 | ||||
Rahulâ€™s capital A/c | Dr. | 1,25,000 | |||
Sachinâ€™s capital A/c | Dr. | 1,25,000 | |||
To Goodwill A/c
(Being goodwill A/c written off in new profit sharing ratio of the continuing partners) |
2,50,000 |
Question 5
Roger, Andy and Pete were partners sharing profits in the ratio of 3:2:1. Pete retired from the firm on 1st April, 2018 on which date goodwill of the enterprise was valued at â‚¹. 1,20,000/-. Pass the necessary journal entries raising goodwill for the retiring partners to share in the current value of goodwill giving effect to it on Peteâ€™s retirement.
Solution:
JOURNAL ENTRIES | |||||
Date | Particulars | L.F | Debit | Credit | |
April 1, 2018 | Goodwill A/c | Dr. | 20,000 | ||
To Peteâ€™s A/c Â Â Â Â Â Â Â Â Â Â Â Â Â
(Being the goodwill A/c debited with Peteâ€™s share in the current value of goodwill) |
20,000 | ||||
Rogerâ€™s capital A/c | Dr. | 12,000 | |||
Andyâ€™s capital A/c | Dr. | 8,000 | |||
To Goodwill A/c
(Being goodwill A/c written off in new profit sharing ratio of the continuing partners) |
20,000 |
Also Check:Â Important Questions for Retirement/Death of a Partner
Question 6
A, B and C were partners sharing profits in the ratio of 2:3:5. Goodwill is appearing in their books at a value of â‚¹. 50,000/-. A retires and on the day of Aâ€™s retirement, goodwill is valued at â‚¹. 45,000/-. B and C decided to share future profits equally.
Solution:
JOURNAL ENTRIES | |||||
Date | Particulars | L.F. | Debit | Credit | |
April 1, 2018 | Aâ€™s capital A/c | Dr. | 10,000 | ||
Bâ€™s capital A/c | Dr. | 15,000 | |||
Câ€™s capital A/c Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Â Â |
Dr. | 25,000 | |||
To goodwill A/c
(Being goodwill appearing in the books written off in the old ratio) |
50,000 | ||||
Bâ€™s capital A/c | Dr. | 9,000 | |||
To Aâ€™s capital A/c [2/10 X 45,000]
(Being Aâ€™s share of goodwill debited to Bâ€™s capital A/c, as he alone has gained on Aâ€™s retirement) [Working Note] |
9,000 |
Working Note –
Gain of a partner = New share – old share
B gains = 1/2-3/10 = 5-3/10 = 2/10
C gains = 1/2-5/10 = 5-5/10 = 0
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