T S Grewal Solutions 2026-27 [Class 12] – Death of a Partner – Q 21 to 30

Death of a Partner /

Solution for Q 21 to 30 of Chapter 6 of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Death of a Partner from Partnership Accounts class 12. These Solutions are based on topics Calculation of profit share of deceased partner, Deceased partner share of goodwill and profits, determination of amount payable to executors of a deceased partner

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 21
Sales for the year 31-Mar-2025       1200000  
Loss for the year 31-Mar-2025   90000  
Loss % age for the year 31-Mar-2025   7.50%  
           
During the period Apr 25 to Dec 25 :      
Sales   600000  
Assumed loss (600000 X 7.5/100)   45000  
Param's share in profits   1/3  
Param's share in profits       15000  
Journal enty not requried in question. It is given here only for information :
 
Param's Capital A/c Dr..       15000  
    To Profit and Loss Suspense A/c         15000
▶ Video Solution: Coming Soon
Question 22
Loss from beginning of the year till date of death         360000  
Bikram's share in profits   1/3  
Bikram's share in loss for Apr 2025 to Sep 2025         120000  
Journal Entry
 
Date Particulars       Dr Amt Cr Amt
30-Sep-25 Bikram's Capital A/c Dr..   120000  
      To Profit and Loss Suspence A/c     120000
  (Being deceased partner share of loss upto date of death)      
             
  Profit and Loss Suspence A/c Dr..   120000  
      To Akhil's Capital A/c     36000
      To Charu's Capital A/c     84000
  (Being loss share of deceased partner adjusted in gaining ratio)      
             
      OR      
30-Sep-25 Bikram's Capital A/c Dr..   120000  
      To Akhil's Capital A/c     36000
      To Charu's Capital A/c     84000
  (Being loss share of deceased partner adjusted in gaining ratio)          
Working Note :
 
Calculation of Gaining Ratio
New Profit sharing ratio
Akhil Charu Total        
3 2 5        
Old profit sharing ratio
Akhil Bikram Charu Total      
3 2 1 6      
Gaining ratio
Akhil Charu Total        
1/10 7/30 1/3        
3 7 10        
▶ Video Solution: Coming Soon
Question 23
Sales for last year     1200000    
Add - 20% growth   240000    
           
Assumed sales   1440000    
(for current year for 12 months)        
           
Assumed sales   360000    
(1440000*3/12)        
(From 01-Apr to 01-Jul-2025)          
Profit for last year     300000    
Profit % on sales for last year   25    
(300000/1200000*100)          
Assumed profit     90000    
(from 01-Apr to 01-Jul-2025)        
(360000*25/100)        
           
Abha profit ratio   5/10    
Abha profit   45000    
(from 01-Apr to 01-Jul-2025)          
Journal Entry :
 
Profit and Loss Suspense A/c Dr..       45000  
           To Abha Capital A/c         45000
▶ Video Solution: Coming Soon
Question 24
Calculation of goodwill
 
Profits for the year ended 31-Dec-2022       150000    
Profits for the year ended 31-Dec-2023   100000    
Profits for the year ended 31-Dec-2024   50000    
Profits for the year ended 31-Dec-2025   100000    
Total Profits   400000    
             
Y's share in profits   3/8    
Profits credited to Y during last 4 years   150000    
(400000*3/8)        
Y's share of goodwill   75000    
(1/2 of the profits credited)            
Journal Entry
 
Date Particulars     Dr Amt Cr Amt  
01-Feb-26 Z's Capital A/c Dr..   75000    
      To Y's Capital A/c     75000  
  (Being deceased partner share of goodwill adjusted)          
Working Note :
 
Calculation of Gaining Ratio
 
New Profit sharing ratio
X Z Total        
1 1 2        
Old profit sharing ratio
X Y Z Total      
4 3 1 8      
Gaining ratio
X Z Total        
0 3/8 3/8        
Calculation of deceased partner profit share upto the date of death
 
Profits for the year ended 31-Dec-2024       50000    
Profits for the year ended 31-Dec-2025   100000    
Total Profits   150000    
             
Average profits (12 months)   75000    
(150000/2)        
Apprx profits from Apr 2025 to Jan 2026   62500    
(10 months) (75000/12X10)        
             
Y's share in profits   3/8    
Y's share in profits   23438    
(from Apr 2025 to Jan 2026)            
Journal Entry
 
Date Particulars       Dr Amt Cr Amt
01-Feb-26 Profit and Loss Suspence A/c Dr..   23438  
      To Y's Capital A/c     23438
  (Being deceased partner share of profit upto date of death)      
             
  Z's Capital A/c Dr..   23438  
      To Profit and Loss Suspence A/c     23438
  (Being profit share of deceased partner adjusted in gaining ratio)      
             
  OR      
             
  Z's Capital A/c Dr..   23438  
      To Y's Capital A/c     23438
  (Being profit share of deceased partner adjusted in gaining ratio)          
▶ Video Solution: Coming Soon
Question 25
Date Particulars       Dr Amt Cr Amt
01-Oct-19 Profit and Loss Suspence A/c Dr..   22500  
      To Karim's Capital A/c     22500
  (Being deceased partner share of profit upto date of death)      
             
  Saleem's Capital A/c Dr..   60000  
  Raheem's Capital A/c Dr..   45000  
      To Karim's Capital A/c     105000
  (Being deceased partner share of goodwill adjusted)      
             
  Karim's Capital A/c Dr..   735000  
      To Karim's Executor's A/c     735000
  (Being balance in Karim's Capital transferred to Karim's Executor's A/c)      
             
15-Oct-19 Karim's Executor's A/c Dr..   735000  
      To Bank A/c     735000
  (Being amount paid to Karim's executor)          
Working Note :
 
Calculation of share of profits
 
Profits for 2015-2016     170000      
Profits for 2016-2017   130000      
Profits for 2017-2018   190000      
Profits for 2018-2019   110000      
             
Total Profits for last 4 years   600000      
             
Average profits for last 4 years   150000 (600000 / 4)    
             
Profits upto 30-Sep-2019   75000 (150000 X 6 /12)    
(6 months)          
             
Karim's share in profits   3/10      
             
Karim's share in profits   22500 (75000*3/10)    
(for the period Apr 2019 to Sep 2019)            
▶ Video Solution: Coming Soon
Question 26
Kamal Capital A/c
Particulars     Amount Particulars   Amount
To Drawings A/c   5000 By Balance B/d   40000
To Interest on Drawings A/c   100 By Interest on Capital   300
        (40000*3/100*3/12)    
(5000*2/100)     By P & L Suspence A/c   3000
To Kamal's Executor's A/c   38200      
             
  Total   43300   Total 43300
Working Note :
Calculation of Interest on Capital
 
Capital     40000      
Interest @ 3% (12 months)   1200 (40000 X 3/100)    
Interest for 3 months   300 (1200 X 3 / 12)    
             
Calculation of share of profits          
Last year profits   30000 ( for 12 months)    
Firms Profits for 3 months   7500 (30000 X 3 / 12)    
             
Kamal share in profits   2/5      
             
Kamal share in profits till date of death     3000 (7500*2/5)    
Journal Entry for transferring balance to executor A/c
 
Kamal Capital A/c Dr..     38200      
      To Kamal Executor A/c       38200    
▶ Video Solution: Coming Soon
Question 27
Chandni Capital A/c
Particulars     Amount Particulars   Amount
        By Balance B/d   300000
        By General Reserve   30000
        (60000*5/10)    
        By Interest on Capital   15000
        (300000*10/100*6/12)    
        By Remaining partners   60000
        By P & L Suspence A/c   112500
To Chandni's Executor's A/c   517500      
             
  Total   517500   Total 517500
Working Note :
Calculation of Interest on Capital
 
Capital     300000      
Interest @ 10% (12 months)   30000 (40000 X 10/100)    
Interest for 6 months     15000 (30000 X 6 / 12)    
Calculation of Share in Goodwill
Firms Goodwill     120000      
Chandni share in profits   5/10      
Chandni share in Goodwill     60000      
Calculation of share of profits
Previous year profits     450000 ( for 12 months)    
Firms Profits for 6 months   225000 (30000 X 6 / 12)    
             
Chandni share in profits   1/2      
Chandni share in profits   112500 (7500*2/5)    
(till date of death)            
Journal Entry for transferring balance to executor A/c
 
Chandni Capital A/c Dr..     517500      
      To Chandni Executor A/c       517500    
▶ Video Solution: Coming Soon
Question 28
Date Particulars       Dr Amt Cr Amt      
  Revaluation A/c Dr..   24000        
      To Patents A/c     8000      
      To Furniture A/c     6000      
      To Plant A/c     10000      
  (Being Assets revalued)            
                   
  Workmen Compensation Fund A/c Dr..   10000        
      To Workmen Compensation Liability A/c     7000      
      To A's Capital A/c     1000      
      To B's Capital A/c     1000      
      To C's Capital A/c     1000      
  (Workmen compensation fund transferred to liability A/c            
  and balance transferred to partner capital A/c)            
                   
  A's Capital A/c Dr..   6000        
  B's Capital A/c Dr..   6000        
  C's Capital A/c Dr..   6000        
      Deferred Advertisement Expenditure A/c Dr..     18000      
                   
  General Reserve A/c Dr..   27000        
      To A's Capital A/c     9000      
      To B's Capital A/c     9000      
      To C's Capital A/c     9000      
  (Being General Reserve transferred to partner capital A/c)            
                   
  Profit and Loss A/c Dr..   6000        
      To A's Capital A/c     2000      
      To B's Capital A/c     2000      
      To C's Capital A/c     2000      
  (Being Profit and Loss A/c transferred to partner capital A/c)            
                   
  A's Capital A/c Dr..   8000        
  B's Capital A/c Dr..   8000        
  C's Capital A/c Dr..   8000        
      To Revaluation A/c     24000      
  (Being Loss on revaluation transferred to capital A/c)            
                   
  A's Capital A/c Dr..   38000        
      To A's Executor's A/c     38000      
  (Being balance in A's Capital transferred to A's Executor's A/c)                
Working Note :
 
Revaluation A/c        
Particulars   Amount Particulars   Amount        
To Patents A/c   8000              
To Furniture A/c   6000              
To Plant A/c   10000              
                   
      By Loss transferred            
      A Capital A/c 8000          
      B Capital A/c 8000          
      C Capital A/c 8000 24000        
                   
  Total 24000     24000        
Partner Capital A/c
Particulars   A B C Particulars   A B C
To Deferred Revenue   6000 6000 6000 By Balance B/d   40000 30000 20000
To Revaluation A/c   8000 8000 8000 By WCR   1000 1000 1000
                   
To A's Executor A/c   38000     By General Reserve   9000 9000 9000
To Balance C/d     28000 18000 By P&L A/c   2000 2000 2000
                   
Total   52000 42000 32000 Total   52000 42000 32000
A's Capital A/c        
Particulars   Amount Particulars   Amount        
To Revaluation A/c   8000 By Balance B/d   40000        
To Def Revenuue   6000 By General Reserve A/c   9000        
      (9000/3)            
      By Profit and Loss A/c   2000        
      (6000/3)            
      By Work Comp Fund   1000        
      (3000/3)            
                   
To A's Executor's A/c   38000              
                   
  Total 52000   Total 52000        
▶ Video Solution: Coming Soon
Question 29
Shirish Capital A/c
Particulars     Amount Particulars     Amount
        By Balance B/d   100000
               
        By Profit and Loss Suspence A/c   8750
        By Harit Capital A/c (Goodwill)   56000
        By Asha Capital A/c (Goodwill)   14000
        By Profit and Loss Loss 2024-25 (5/10)   40000
               
               
               
To Shirish's Executor's A/c   218750        
               
  Total   218750   Total   218750
Working Note :
Calculation of share of profits
 
Profits for the year 2023-2024       60000      
Profits for the year 2024-2025   80000      
Total Profits   140000      
               
Average Profits (12 months)   70000      
Profits upto 30-Jun-2015 (3 months)   17500      
(70000 X 3 /12)          
Shirish's share in profits   1/2      
Shirish's share in profits   8750      
(for the period Apr 2018 to Jun 2018)              
Calculation of Goodwill
 
Average Profits (12 months) as above       70000      
No of years Purchase   2      
Goodwill of the firm   140000      
Shirish's share in profits   1/2      
Shirish share of Goodwill       70000      
Journal Entry for goodwill
 
Date Particulars       Dr Amt Cr Amt  
30-Jun-25 Harit's Capital A/c Dr..   56000    
  Asha's Capital A/c Dr..   14000    
      To Shirish's Capital A/c     70000  
  (Being deceased partner share of goodwill adjusted)            
▶ Video Solution: Coming Soon
Question 30
Somesh Capital A/c
Particulars     Amount Particulars     Amount
To Drawings   36000 By Balance B/d   120000
To Interest on Drawings   360        
(See note below)     By Profit and Loss Suspence A/c (note)   22500
To Loan to Somesh   20000 By Rahul Capital A/c (Goodwill)   20571
        By Kamlesh Capital A/c (Goodwill)   27429
        By General Reserve   3000
        (36000*3/10)    
        By Interest on Capital   2400
        (see nore below)    
               
To Somesh's Executor's A/c   139540        
               
  Total   195900   Total   195900
Working Note :
Calculation of share of profits
 
Sales for year ended 31-Mar-2025       800000      
Profits for the year 2024-2025   200000      
Profit %age   25      
               
Sales for 01-Apr-2025 to 31-Jul-2026   300000      
Profits for 01-Apr-2025 to 31-Jul-2026   75000      
(300000*25/100)          
               
Somesh share in profits   3/10      
Somesh share for 4 months       22500      
Calculation of Goodwill
 
Average Profits (last 3 years)       80000      
No of years Purchase   2      
Goodwill of the firm   160000      
Somesh's share in profits   3/10      
Somesh share of Goodwill       48000      
Calculation of Interest on Capital
Opening Balance of Capital       120000      
Interest Rate   6%      
Interest Amount   2400      
(120000*6/100*4/12)              
Calculation of Interest on Drawings
Drawings for the period       36000      
Interest Rate   6%      
1st Drawings   15-Apr-25      
Last drawings   15-Jul-25      
Tiime since 1st Drawings (Mths)   3.5      
Tiime since last Drawings (Mths)   0.5      
Average Period for interest   2      
Interest on Drawings       360      
Note : In the ansence of information we assume drawings
made in mid of each month)
 
Journal Entry for goodwill
 
Date Particulars       Dr Amt Cr Amt  
31-Jul-25 Rahul's Capital A/c Dr..   20571    
  Kamlesh's Capital A/c Dr..   27429    
      To Somesh's Capital A/c     48000  
  (Being deceased partner share of goodwill adjusted)            
▶ Video Solution: Coming Soon

Q 1-10 | Q 11-20 | Q 21-30 | Q 31-36

T S Grewal Solutions – Death of a Partner– All Questions

T S Grewal Solutions Class 12 2026-27 – All Chapters

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