T S Grewal Solutions 2026-27 [Class 12] – Retirement of a Partner – Q 41 to 50

Retirement of a Partner /
Question 41
Paresh Capital A/c        
Particulars Amount Particulars Amount        
To Drawings   5000 By Balance B/d   80000        
To Interest on Drawings   100 By Interest on Capital   8000        
To Revaluation A/c   4800 By P & L Appr A/c   20000        
To Cash A/c   7700 By Harish Capital (G/w)   8000        
To Paresh Loan A/c   100000 By Mahesh Capital (G/w)   1600        
                   
Total   117600 Total   117600        
Paresh Loan A/c
Date Particulars     Amount Date Particulars     Amount
31-Mar-26 To Bank A/c   56000 01-Apr-25 By Rakesh Capital A/c   100000
31-Mar-26 To Balance C/d   50000 31-Mar-26 By Interest   6000
                   
  Total   106000   Total   106000
                   
31-Mar-27 To Bank A/c   53000 01-Apr-26 By Balance B/d   50000
          31-Mar-27 By Interest   3000
                   
  Total     53000   Total     53000
▶ Video Solution: Coming Soon
Question 42
Profit sharing ratio between X and Z
X Z Total    
3 1 4    
(Same as old mutual ratio)
   
Total Capital of the new firm 210000
   
Calculation of new capital  
X   Y    
210000 X 3/4   210000 X 1/4    
157500   52500    
Capital Adjustment
Particulars     X Y
New Capital   157500 52500
Old Capital (Adjusted)   145000 63000
Difference   12500 -10500
Cash   Brought Taken
Capital   Cr Dr
Current/Cash     Dr Cr
Thus X to bring in Rs 12500 and Z to withdraw Rs 10500
 
Note :
Old ratio is required only to find the new ratio
 
Journal Entries : (Given here for information)
Cash A/c Dr..   12500    
       To X Capital A/c     12500  
         
Z Capital A/c Dr..   10500    
     To Cash A/c     10500  
▶ Video Solution: Coming Soon
Question 43
Goodwill    
Total Goodwill of the firm 300000  
Monika Retired  
Monika's share in Goodwill 120000 (300000 X 2/5)
     
Old Profit Sharing Ratio Lisa Monika Nisha Total      
      2 2 1 5      
New Profit sharing ratio Lisa Nisha Total        
(Same as mutual old ratio) 2 1 3        
Gaining ratio = New ratio - old ratio ** Though no need to calculate,it will be same
   
Lisa's gaining ratio 3/5 -3/6 4/15          
Nisha's Gaining Ratio 2/5 - 2/6 2/15          
Final Gaining Ratio Lisa Nisha Total        
      2 1 3        
Lisa Contribute 80000 (120000 X 2/3)
Nisha Contribute 40000 (120000 X 1/3)
     
Revaluation A/c        
Particulars Amount Particulars Amount        
To Machinery   120000 By Land and Buildings   240000        
To Prov for Bad Debts   20000              
                   
                   
To Profit on Revaluation :                  
To Lisa's Capital A/c   40000              
To Monika's Capital A/c   40000              
To Nisha's Capital A/c   20000              
                   
                   
    240000     240000        
** No adjustment required to stock taken over by partner in revaluation A/c as it is taken over at book value
 
Partners Capital A/c
Particulars Lisa Monika Nisha Particulars Lisa Monika Nisha
          By Balance B/d   1400000 1400000 360000
          By Revaluation A/c-Profit   40000 40000 20000
To Monika's Capital A/c-G/W   80000   40000 By Lisa's Capital A/c     80000  
To Stock A/c     500000   By Nisha's Capital A/c     40000  
To Monika Loan A/c     1060000            
To Balance C/d   1360000   340000          
Total   1440000 1560000 380000     1440000 1560000 380000
                   
          By Balance B/d   1360000   340000
          By Lisa Current A/c   440000    
          By Nisha Current A/c       560000
To Balance c/d   1800000   900000          
                   
Total   1800000 0 900000 Total   1800000 0 900000
Balance Sheet        
Liabilities Amount Assets Amount Explanation      
Trade Creditors   404000 Land and Building   1240000 (1000000+240000)      
      Machinery   1080000 (1200000 - 120000)      
Employees Provident Fund   76000 Stock   500000 (1000000-500000)      
Monika's Loan A/c   1060000 Sundry Debtors 400000          
Lisa's Capital A/c   1800000 Less - Prov 20000 380000        
Nisha's Capital A/c   900000 Bank   40000        
      Lisa Current A/c   440000        
      Nisha Current A/c   560000        
                   
    4240000     4240000        
Working Note :  
Total Capital of the new firm 2700000 (given)
     
Particulars     Lisa Nisha          
New Capital   1800000 900000          
Lisa - (2700000*2/3)                
Nisha - (2700000*1/3)                
Adjusted Capital   1360000 340000          
Difference/Deficit   440000 560000          
Capital A/c   Cr Cr          
Current A/c     Dr Dr          
Journal entries :          
Lisa Current A/c Dr..     440000            
   To Lisa Capital A/c     440000          
                   
Niisha Current A/c Dr..   560000            
   To Nisha Capital A/c       560000          
▶ Video Solution: Coming Soon
Question 44
Goodwill    
Total Goodwill of the firm 18000  
B Retired  
B's share in Goodwill 6000 (18000*2/6)
     
Old Profit Sharing Ratio A B C Total      
      3 2 1 6      
New Profit sharing ratio A C          
      3 1          
Gaining ratio = New ratio - old ratio
 
A's gaining ratio 3/4 - 3/6 1/4          
C's Gaining Ratio 1/4 - 1/6 1/12          
Final Gaining Ratio A C Total        
      3 1 4        
A Contribute for Goodwill 4500
C Contribute for Goodwill 1500
   
Revaluation A/c        
Particulars Amount Particulars Amount        
To Prov for Doubtful Debts   300 By Prepaid Insurance   1000        
To Machinery   1200 By Freehold Premises   5000        
To Workmen Comp Liab   1500              
                   
                   
                   
                   
To Profit on Revaluation :                  
To A's Capital A/c   1500              
To B's Capital A/c   1000              
To C's Capital A/c   500              
                   
                   
    6000     6000        
Partners Capital A/c
Particulars A B C Particulars A B C
          By Balance B/d   45000 30000 15000
          By Revaluation A/c-Profit   1500 1000 500
To B's Capital A/c   4500   1500 By A's Capital A/c     4500  
          By C's Capital A/c     1500  
                   
                   
                   
To Bank A/c     5000   By Bank A/c   3000   1000
To B's Loan A/c     32000            
To Balance c/d   45000   15000          
                   
Total   49500 37000 16500 Total   49500 37000 16500
Capital Adjustment
   
Total Capital of the firm : 60000
   
Partner New Adjusted Difference            
A 45000 42000 3000 (Cash In)          
C 15000 14000 1000 (Cash In)          
Balance Sheet        
Liabilities Amount Assets Amount        
Creditors   10800 Cash at Bank   12000        
Claim for Workmen Compensation   1500 Debtors 10000          
O/s Expenses   5000 Less - Prov 500 9500        
B's Loan A/c   32000 Stock   9000        
A's Capital A/c   45000 Machinery   22800        
C's Capital A/c   15000 Freehold Premises   55000.0        
      Prepaid Insurance   1000        
                   
                   
    109300     109300        
Bank A/c        
Particulars Amount Particulars Amount        
To Balance B/d   13000              
To A's Capital   3000 By B's Capital   5000        
To C's Capital   1000 To Balance C/d   12000        
                   
Total   17000 Total   17000        
▶ Video Solution: Coming Soon
Question 45
Goodwill    
Total Goodwill of the firm 36000  
Y Retired  
Y's share in Goodwill 12000 (36000*2/6)
     
Old Profit Sharing Ratio X Y Z Total      
      90000 60000 30000        
      3 2 1 6      
New Profit sharing ratio X Z Total        
      3 1 4        
Gaining ratio = New ratio - old ratio
 
X's gaining ratio 3/4 - 3/6 1/4          
Z's Gaining Ratio 1/4 - 1/6 1/12          
Final Gaining Ratio X Z Total        
      3 1 4        
X Contribute 9000 (12000*3/4)
Z Contribute 3000 (12000*1/4)
     
Revaluation A/c        
Particulars Amount Particulars Amount        
To Prov for Doubtful Debts   700 By Sundry Creditors   2500        
                   
                   
                   
To Profit on Revaluation :                  
To X's Capital A/c   900              
To Y's Capital A/c   600              
To Z's Capital A/c   300              
                   
                   
    2500     2500        
Partners Capital A/c
Particulars X Y Z Particulars X Y Z
          By Balance B/d   90000 60000 30000
          By Revaluation A/c-Profit   900 600 300
To Y's Capital A/c   9000   3000 By X's Capital A/c     9000  
          By Z's Capital A/c     3000  
          By General Reserve   3000 2000 1000
          By Workmen Comp Fund   4500 3000 1500
                   
To Bank A/c     9000   By Bank A/c   600   200
To Y's Loan A/c     68600            
To Balance c/d   90000   30000          
                   
Total   99000 77600 33000 Total   99000 77600 33000
Capital Adjustment
Total Capital of the firm : 120000
Partner New Adjusted Difference            
X 90000 89400 600 (Cash In) 120000*3/4        
Z 30000 29800 200 (Cash In) 120000*1/4        
Balance Sheet        
Liabilities Amount Assets Amount        
Sundry Creditors   14100 Cash at Bank   6800        
      (15000+600+200-9600)            
(16600-2500)     Debtors 21000          
      Less - Prov 2100 18900        
Y's Loan A/c   68600 Stock   19000        
X's Capital A/c   90000 Machinery   58000        
Z's Capital A/c   30000 Building   100000        
                   
                   
                   
    202700     202700        
Cash A/c        
Particulars Amount Particulars Amount        
To Balance B/d   15000              
To X's Capital   600 By Y's Capital   9000        
To Z's Capital   200 To Balance C/d   6800        
                   
Total   15800 Total   15800        
▶ Video Solution: Coming Soon
Question 46
Old Profit Sharing Ratio Shweta Meenu Asha
           
      3 5 2
New Profit sharing ratio Shweta Asha Total
      3 2 5
Capital Adjustment  
Particulars   Shweta Asha Total  
Old   300000 100000 400000  
New   240000 160000 400000  
Shweta - (400000*3/5)          
Menu - (400000*2/5)          
Difference   60000 -60000 0  
Capital   Dr Cr    
Cash   Cr Dr    
Cash out   60000      
Cash in     60000    
Journal Entries
Cash/Bank A/c Dr..     60000    
    To Asha Capital A/c     60000  
           
Shweta Capital A/c Dr..   60000    
    To Cash/Bank A/c       60000  
▶ Video Solution: Coming Soon
Question 47
Goodwill    
Total Goodwill of the firm 600000  
Chandan Retired  
Chandan's share in Goodwill 120000 (600000*1/5)
     
Old Profit Sharing Ratio Chandan Deepak Elvish Total    
                   
        1 2 2 5    
New Profit sharing ratio Deepak Elvish Total      
(Same as old mutual ratio) 1 1 2      
Gaining ratio = New ratio - old ratio ** Though no need to calculate,it will be same
   
Gaining Ratio Deepak Elvish Total      
        1 1 2      
Deepak Contribute 60000 120000 X 1/2
Elvish Contribute 60000 120000 X 1/2
     
Revaluation A/c        
Particulars Amount Particulars Amount        
To Fixed Assets   270000              
To Debtors   30000              
                   
                   
                   
                   
                   
      By Loss on Revaluation :            
      By Chandan's Capital A/c   60000        
      By Deepak's Capital A/c   120000        
      By Elvish's Capital A/c   120000        
                   
                   
    300000     300000        
Partners Capital A/c
Particulars Chandan Deepak Elvish Particulars Chandan Deepak Elvish
          By Balance B/d   700000 500000 300000
To Revaluation A/c-Loss   60000 120000 120000          
To Chandan's Capital A/c-GW     60000 60000 By Deepak's Capital A/c-GW   60000    
          By Elvish's Capital A/c-GW   60000    
          By General Reserve   90000 180000 180000
To Bank A/c   850000              
To Balance C/d     500000 300000          
                   
Total   910000 680000 480000 Total   910000 680000 480000
          By Balance B/d     500000 300000
          By Bank     325000 525000
                   
To Balance C/d     825000 825000          
                   
Total     825000 825000 Total     825000 825000
Total Capital of the firm :
 
Partner   Existing New Difference Capital A/c        
Deepak   500000 825000 -325000 Cr        
Elvish   300000 825000 -525000 Cr        
Cash-Chandan   850000              
                   
Total   1650000              
Note : Balance sheet not asked in the question. Given here only for information
Balance Sheet        
Liabilities Amount Assets Amount        
Partners Capitals     Fixed Assets   2430000        
      (2700000*0.9)            
Deepak   825000 Stock   300000        
Elvish   825000 Debtors   170000        
      (200000-30000)            
      Cash   100000        
Creditors   1350000              
                   
                   
                   
                   
    3000000     3000000        
Bank A/c        
Particulars   Amount Particulars   Amount        
To Bal B/d   100000 By Chandan Cap   850000        
To Deepak Cap   325000 By Balance C/d   100000        
To Elvish Cap   525000              
                   
Total   950000 Total   950000        
▶ Video Solution: Coming Soon
Question 48
Goodwill  
Total Goodwill of the firm 21000
Chander Retired
B's share in Goodwill 7000
   
Old Profit Sharing Ratio N S B Total      
      1/2 1/6 1/3 1      
      3 1 2 6      
New Profit sharing ratio N S Total        
(Same as old mutual ratio) 3 1 4        
Gaining ratio = New ratio - old ratio ** Though no need to calculate,it will be same
   
Final Gaining Ratio N S Total        
      3 1 4        
N Contribute 5250
S Contribute 1750
   
Revaluation A/c        
Particulars Amount Particulars Amount        
To Machinery   3000 By Freehold Premises   8000        
To Furniture   840.0 By Stock   3300        
To Prov for Bad Debts   1500              
                   
                   
                   
                   
To Profit on Revaluation :                  
To N's Capital A/c   2980              
To S's Capital A/c   993              
To B's Capital A/c   1987              
                   
                   
    11300     11300        
Partners Capital A/c
Particulars N S B Particulars N S B
          By Balance B/d   30000 30000 28000
          By Revaluation A/c-Profit   2980 993 1987
To B's Capital A/c-GW   5250 1750   By N's Capital A/c-GW       5250
          By S's Capital A/c-GW       1750
          By General Reserve   6000 2000 4000
To B's Loan A/c       40987          
To Balance C/d   33730 31243            
                   
Total   38980 32993 40987     38980 32993 40987
                   
          By Balance B/d   33730 31243  
To S's Current A/c     15000   By N's Current A/c   15000    
                   
To Balance c/d   48730 16243            
                   
Total   48730 31243 0 Total   48730 31243 0
Capital Adjustment :
Partner Name   Existing New Difference          
N   33730 48730 -15000 (Cr Capital A/c)   (Dr Current A/c)    
S   31243 16243 15000 (Dr Capital A/c)   (Cr Current A/c)    
Total   64973 64973            
Balance Sheet        
Liabilities Amount Assets Amount        
Sundry Creditors   18000 Freehold Premises   48000        
Bills Payable   12000 Machinery   27000        
S's Current A/c   15000 Furniture   11160        
B's Loan A/c   40987 Stock   25300.0        
N's Capital A/c   48730 Sundry Debtors 20000          
S's Capital A/c   16243 Less - Prov 2500 17500        
      Cash   7000        
      N's Current A/c   15000        
                   
    150960     150960        
▶ Video Solution: Coming Soon
Question 49
Goodwill    
Total Goodwill of the firm 280000  
Kusum Retired  
Kusum's share in Goodwill 80000 (280000*2/7)
     
Old Profit Sharing Ratio Kusum Sneh Usha Total      
      2 3 2 7      
New Profit sharing ratio Sneh Usha          
      3 4          
Gaining ratio = New ratio - old ratio
 
Sneh's gaining ratio 3/7 - 3/7 0          
Usha's Gaining Ratio 4/7 - 2/7 2/7          
Final Gaining Ratio Sneh Usha          
      0 2          
Sneh Contribute 0
Usha Contribute 80000
     
  Revaluation A/c
Particulars Amount Particulars Amount        
To Machinery   180000 By Land & Buildings   120000        
To Debtors (Bad Debts)   15000              
                   
                   
      By Loss on Revaluation :            
      By Kusum's Capital A/c   21429        
      By Sneh's Capital A/c   32143        
      By Usha's Capital A/c   21429        
                   
                   
    195000     195000.0        
Partners Capital A/c
Particulars Kusum Sneh Usha Particulars Kusum Sneh Usha
          By Balance B/d   400000 600000 400000
To Revaluation A/c-Loss 21429 32143 21429          
To Kusum's Capital A/c     80000          
          By Usha's Capital A/c   80000    
          By Workmen Comp Res   4286 6429 4286
                   
                   
To Cash A/c 100000              
To Kusum Loan A/c 362857              
To Balance c/d   574286 302857          
                   
Total 484286 606429 404286 Total   484286 606429 404286
          By Balance B/d   574286 302857
To Balance C/d   600000 800000   By Cash A/c   25714 497143
Total   600000 800000         600000 800000
Balance Sheet        
Liabilities Amount Assets Amount Explanation      
Employees Provident Fund   70000 Land & Buuilding   520000 (400000+120000)      
Workmen Compensation Liability   15000 Machinery   420000 (600000-180000)      
Sundry Creditors   100000 Closing Stock   200000        
Kusum Loan A/c   362857 Sundry Debtors   185000 (220000-35000)      
Sneh's Capital A/c   600000 Cash at Bank   622857 (200000-100000+522857)      
Usha's Capital A/c   800000              
                   
                   
                   
    1947857     1947857        
Bank A/c        
Particulars Amount Particulars Amount        
To Balance B/d   200000 By Kusum's Capital A/c   100000        
To Usha's Capital A/c   497143              
TO Sneh's Capital A/c   25714 By Balance C/d   622857        
                   
Total   722857 Total   722857        
** The Capital of the new firm to be as before Kusum Retirement means
As per the Balance sheet given in the question.
As this is the capital before Kusum Retirement
All the adjustments that we have done are subsequent to Kusum's Retirement
 
Total Capital of firm   Amount              
Kusum Capital   400000              
Sneh's Capital   600000              
Usha's Capital   400000              
                   
                   
Total   1400000              
Cash Bought in/Out
Particulars Sneh Usha            
Old Capital   574286 302857            
New Capital   600000 800000            
                   
Difference   25714 497143            
Capital's in new profit sharing ratio
Sneh's Share 600000  
Usha's Share 800000  
     
Note :    
Journal Entry for Bad Debts
Prov for Bad Debts A/c 20000  
Revaluation A/c 15000  
    To Sundry Debtors A/c 35000
     
Journal Entry for Workmen Comp
Workmen Compensation Res A/c Dr 30000  
      To Workment Comp Liability 15000
      To Kusum Capital A/c 4286
      To Sneh Capital A/c 6429
      To Usha Capital A/c 4286
▶ Video Solution: Coming Soon
Question 50
Adjusted capital of bal 49500 (As per question)
Adjusted capital of Pal 105750 (As per question)
Amount paid to Lal 135750 (As per question)
Total Capital of the new firm 291000   and Rs 10000 cash to be left in the firm
       
Partner New Capital   Old Capital   Difference Cr Dr New Capital Calculation    
Bal 116400   49500   66900 Capital Cash (291000 X 2/5)  
Pal 174600   105750   68850 Capital Cash (291000 X 3/5)    
Thus Bal to bring in Rs 66900 and Pal to bring Rs 68850
▶ Video Solution: Coming Soon

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