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.
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 belowmentioned 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 shareold share) 3/51/2=1/10 2/51/5=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.
To Rahulâ€™s a/c To Sachinâ€™s a/c To Souravâ€™s a/c (Being the goodwill a/c debited with the current value of goodwill) 
2,50,000  1,25,000
83,333 41,667 

Rahulâ€™s capital a/c Dr.
Sachinâ€™s capital a/c Dr. To Goodwill a/c (Being goodwill a/c written off in new profit sharing ratio of the continuing partners) 
1,25,000
1,25,000 
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 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.
To Peteâ€™s a/c (Being the goodwill a/c debited with Peteâ€™s share in the current value of goodwill) 
20,000  20,000  
Rogerâ€™s capital a/c Dr.
Andyâ€™s capital a/c Dr. To Goodwill a/c (Being goodwill a/c written off in new profit sharing ratio of the continuing partners) 
12,000
8,000 
20,000 
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.
Bâ€™s capital a/c Dr. Câ€™s capital a/c Dr. To goodwill a/c (Being goodwill appearing in the books written off in the old ratio) 
10,000
15,000 25,000 
50,000  
Bâ€™s capital a/c Dr.
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  9,000 
Working Note –
Gain of a partner = New share – old share
B gains = 1/23/10 = 53/10 = 2/10
C gains = 1/25/10 = 55/10 = 0
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