T S Grewal Solutions 2026-27 [Class 12] – Death of a Partner – Q 31 to 36

Death of a Partner /

Solution for Q 31 to 36 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 determination of amount payable to executors of a deceased partner, adjustment of capital and section 37 of Indian Partnership Act

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 31
Trisha Capital A/c
Particulars     Amount Particulars     Amount
To Drawings A/c   20000 By Balance B/d   300000
To Goodwill w/o   8000 By Salary   20000
        (15000/3*4)    
        By Profit and Loss Suspence A/c   20000
        By Anisha Capital A/c (Goodwill)   80000
        By Rishika Capital A/c (Goodwill)   40000
        By General Reserve (2/5)   28000
        (70000*2/5)    
               
To Trisha's Executor's A/c   460000        
               
  Total   488000   Total   488000
Working Note :
 
Calculation of share of profits
Profit for the year 31-Mar-2025       150000      
Firm Profit for 01-Apr-25 to 31-Jul-25   50000      
(150000/12*4)          
Trisha's share in profits   2/5      
Trisha's share in profits   20000      
(for the period Apr 2025 to Jul 2025)          
(50000*2/5)              
Calculation of Goodwill
2022-2023     100000        
2023-2024   200000        
2024-2025   150000        
               
Total Profits   450000        
               
Average profit of last 3 years   150000        
(450000/3)            
No of years purchase (Twice)   2        
Value of goodwill of the firm   300000        
(150000*2)            
Trisha's share in profits   2/5        
Trisha's share in Goodwill   120000        
(300000*2/5)              
Calculation of Gaining Ratio
Anisha : Rishika = 2 : 1
 
Journal Entry for goodwill
 
Date Particulars       Dr Amt Cr Amt  
31-Jul-25 Anisha's Capital A/c Dr..   80000   (120000 X 2/3)
  Rishika's Capital A/c Dr..   40000   (120000 X 1/3)
      To Trisha's Capital A/c     120000  
  (Being deceased partner share of goodwill adjusted)            
▶ Video Solution: Coming Soon
Question 32
Purav Capital A/c  
Particulars   Amount Particulars   Amount  
To Drawings   10000 By Balance B/d   40000  
             
      By P & L Suspence A/c   3000  
      By Madhav Capital A/c   22500  
      (Goodwill)      
      By Raghav Capital A/c   7500  
      (Goodwill)      
      By Interest on Capital   2400  
      By General Res (1/5)   10000  
             
             
To Purav's Exe A/c   75400        
             
  Total 85400   Total 85400  
Working Note :
 
Calculation of share of profits            
No need for any calculation   3000      
(as it is given in the question)            
Calculation of Goodwill
 
Average Profits for last 4 years     50000      
No of years Purchase   3      
Goodwill of the firm   150000      
Purav's share in profits   1/5      
Purav's share of Goodwill     30000      
Journal Entry for goodwill
Date Particulars       Dr Amt Cr Amt
30-Sep-23 Madhav's Capital A/c Dr..   22500  
  Raghav's Capital A/c Dr..   7500  
      To Purav's Capital A/c     30000
  (Being deceased partner share of goodwill adjusted)          
Calculation of Interest on Capital
Capital     40000      
Interest @ 12%   4800      
Interest for 6 months     2400 (4800 X 6 / 12)    
▶ Video Solution: Coming Soon
Question 33
Prateek's Capital A/c
Particulars   Amount Particulars   Amount
To P & L Suspense   32000 By Balance B/d   700000
To P&L A/c   128000      
(320000*2/5)          
To Advance to Y   700000      
      By X's Cap A/c (Goodwill)   64000
      (96000*2/3)    
      By Z's Cap A/c (Goodwill)   32000
      (96000*1/3)    
      By General Reserve (60000X2/5)   24000
           
      By Y's Executor's A/c   40000
           
  Total 860000   Total 860000
Working Note :
 
Calculation of share of profits
Profits for 2025 (12 months) (Loss)       320000  
Firm Loss upto 30-Jun-2025 (3 months)   80000  
(320000 X 3 /12)      
Y's share in profits   2/5  
Y's share in Loss for the period Apr 2025 to Jun 2025       32000  
Calculation of Goodwill
Profits for 2021       440000  
Profits for 2022   220000  
Profits for 2023   160000  
Profits for 2024   100000  
Profits for 2025       -320000  
Total Profits for last 5 years       600000  
Average profits for last 5 years       120000  
(600000/5)      
No of years purchase   2  
Value of Goodwill of the firm   240000  
Y's share in profits   2/5  
Y's share of Goodwill       96000  
Journal Entry for goodwill
Date Particulars     Dr Amt Cr Amt
30-Jun-25 X's Capital A/c Dr.. 64000  
  Z's Capital A/c Dr.. 32000  
      To Ys Capital A/c   96000
  (Being deceased partner share of goodwill adjusted)        
Sohan's Capital A/c
Particulars   Amount Particulars   Amount
      By Balance B/d   75000
      By Revaluation A/c   700
           
      By P&L Suspense   5000
      By Ram's Cap A/c   21875
       (Goodwill)    
      By Mohan's Cap A/c   13125
      (Goodwill)    
      By WCR   6000
      (30000*2/10)    
To Sohan Executor   121700      
           
  Total 121700   Total 121700
Working Note :
 
Calculation of share of profits
Previous year profits (12 months)       75000  
Profits for 4 months   25000  
(75000 X 4 /12)      
Sohan's share in profits   1/5  
Sohan's share in Profits       5000  
Calculation of Goodwill
Firm's Goodwill       175000  
Sohan share in Profits   1/5  
Sohan share in Goodwill   35000  
Gaining Ratio   5 : 3  
Ram share of Goodwill   21875  
Mohan share of Goodwill       13125  
Journal Entry for goodwill
Date Particulars     Dr Amt Cr Amt
01-Aug-25 Ram's Capital A/c Dr.. 21875  
  Mohan's Capital A/c Dr.. 13125  
      To Sohan Capital A/c   35000
  (Being deceased partner share of goodwill adjusted)        
▶ Video Solution: Coming Soon
Question 35
Revaluation A/c        
Particulars   Amount Particulars   Amount        
To Prov for BD   1500 By Machinery   4000        
      By Furniture   1000        
To Profit on Rev :                  
Ajay 1750                
Vijay 1050                
Sanjay 700 3500              
                   
Total   5000   Total 5000        
Partners Capital A/c
Particulars   Ajay Vijay Sanjay Particulars   Ajay Vijay Sanjay
          By Balance B/d   12000 16000 10000
To Profit & Loss A/c   5000 3000 2000          
          By Revaluation A/c   1750 1050 700
          By General Reserve   10000 6000 4000
          By Loan By Ajay   7000    
To Ajay Current A/c     400   By Sanjay Current A/c       400
To Ajay Exe. Loan A/c   25750              
To Balance c/d     19650 13100          
                   
Total   30750 23050 15100 Total   30750 23050 15100
Adjustment of Capital :
    Vijay Sanjay Total          
Existing Capital   20050 12700 32750          
Revised Capital   19650 13100            
                   
Adjustment   400 -400            
                   
Capital A/c   Dr Cr            
Current A/c   Cr Dr            
Journal entries for capital adjustment :
Vijay Current A/c Dr..   400              
     To Vijay Cap A/c     400            
Sanjay capital A/c Dr..   400              
     To Sanjay Curr A/c     400            
Ajay's Executor Loan A/c    
Date Particulars   Amount Date Particulars   Amount    
        20-Feb-25 By Ajay's Capital A/c   25750    
                   
31-Mar-25 To Balance C/d   25750            
                   
  Total   25750   Total   25750    
Balance Sheet    
Liabilities Amount Assets Amount    
Creditors     19000 Machinery     45000    
        Furniture   7000    
Ajay Executor Loan A/c   25750 Stock   9000    
Salil Current A/c   400 Debtors 15000      
Salil's Capital A/c   19650 Less - Prov 1500 13500    
Ravi's Capital A/c   13100 Cash   3000    
        Ravi Current A/c   400    
                   
Total     77900 Total     77900    
▶ Video Solution: Coming Soon
Question 36
Option 1 - Interest @ 6% on capital
Dinesh Capital     50000
Interest rate   6%
Period (Months)   8
Interest   2000
(50000*6/100*8/12)      
Option 2 - Share in profits proportionate to capital
Dinesh Capital     50000
Total Capital of the firm   250000
(120000+80000+50000)    
Profits for 8 months   2000
(given in question)    
Dinesh Share in profits   400
(50000/250000*40000)      
So Option 2 is better for Dinesh executors
 
Note :
In option 2 profit sharing ratio is not relevant
as partnership is already over on partner death
 
Total Amount payable to Dinesh Executor
Balance in Dinesh Capital A/c     50000
Add - Share in Profits   8000
       
Amount Payable     58000
▶ 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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