T S Grewal Solutions 2026-27 [Class 12] – Retirement of a Partner – Q 11 to 20

Retirement of a Partner /

Solution for Q 11 to 20 of Chapter 5 of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Retirement of a Partner from Partnership Accounts class 12. These Solutions are based on topics Calculation of New ratio and sacrificing and gaining ratio, accounting treatment of Goodwill at the time of retirement of a 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 11
Old profit sharing ratio
P Q R    
7 5 3    
P retires
 
New Profit sharing ratio
Q R Total    
7 5 12    
Gaining ratio = New ratio - old ratio
 
Q's gaining ratio 7/12 - 5/15 1/4
R's Gaining Ratio 5/12 - 3/15 13/60
Final Gaining ratio
Q R      
15 13      
▶ Video Solution: Coming Soon
Question 12
Old profit sharing ratio
Akhil Tanish Rajan Total      
3 2 1 6      
Rajan Retired
 
Rajan gifted to Akhil       1/6 X 1/2 = 1/12    
(half of his share)        
             
Remaining share   1/6 - 1/12 = 1/12  
(Rajan share - Share gifted to Akhil)        
             
Remaining share given to Akhil   1/12 X 1/3 = 1/36  
Remaining share given to Tanish   1/12 X 2/3 = 2/36  
             
Akhil total new share   3/6+1/12 + 1/36 = 11/18  
Tanish New share       2/6+2/36 = 7/18    
New Profit sharing ratio
Akhil Tanish Total        
11/18 7/18          
11 7 18        
Gaining ratio is mainly used to compensate old partner for his loss
Since some part is gifted to Akhil so that part will not be considered for gaining ratio
 
Final Gaining ratio
Akhil Tanish          
1/36 1/18          
1 2          
▶ Video Solution: Coming Soon
Question 13
Old profit sharing ratio          
Sunil Shahid David Total          
4 3 2 9          
Shahid retires
 
New Profit sharing ratio            
Sunil David Total            
5 3 8            
Gaining ratio = New ratio - old ratio
 
Sunil's gaining ratio 5/8 - 4/9 13/72        
David's Gaining Ratio 3/8 - 2/9 11/72        
Final Gaining ratio Sunil David Total      
      13 11 24      
Shahid's share of Goodwill
 
Total Goodwill is     72000          
Shahid's share 3/9 or 1/3              
Shahid's share of Goodwill   24000 (72000*3/9)  
(partner share of goodwill = Firm Goodwill X partner profit share)              
                 
Sunil will contribute   13000 (24000*13/24) or (72000*13/72)  
David will contribute     11000 (24000*11/24)     (72000*11/72)  
Journal Entry                
Sunil's Capital A/c Dr 13000   gaining      
David's Capital A/c Dr 11000   gaining      
              To Shahid's Capital A/c       24000 sacrificing      
▶ Video Solution: Coming Soon
Question 14
Old profit sharing ratio      
P Q R S Total      
5 3 1 1 10      
S retires
 
New Profit sharing ratio        
P Q R Total        
4 3 3 10        
Gaining ratio = New ratio - old ratio
 
P's gaining ratio   4/10 - 5/10   -1/10 Sacrifice    
Q's Gaining Ratio   3/10 - 3/10 0      
R's Gaining Ratio   3/10 - 1/10   1/5 Gain    
Final Gaining ratio
P Q R          
-1/10 0 1/5          
Sacrifice   Gain          
Note : This question has both retirement + change in profit ratio
 
S's share of Goodwill
Total Goodwill is     420000        
S's share 1/10            
S's share of Goodwill   42000 (1/10)      
               
P's share of sacrifice   42000 (1/10) (P also sacrificed at S retirement)  
               
R will contribute     84000        
Journal Entry              
R's Capital A/c Dr 84000        
              To P's Capital A/c     42000      
              To S's Capital A/c       42000      
▶ Video Solution: Coming Soon
Question 15
Old profit sharing ratio
Aparna Manisha Sonia Total    
3 2 1 6    
Manisha retires
 
New Profit sharing ratio
Aparna Sonia Total      
3 2 5      
Gaining ratio = New ratio - old ratio
 
Aparna's gaining ratio 3/5 - 3/6 1/10 (If positive the it means gain)
Sonia's Gaining Ratio 2/5 - 1/6 7/30 (If positive the it means gain)
Final Gaining ratio
Aparna Sonia Total      
1/10 7/30        
3 7 10      
Manisha's share of Goodwill
Total Goodwill is     180000 (Given in the question)  
Manisha's share 2/6 or 1/3        
Manisha's share of Goodwill   60000 (180000*1/3)  
           
Aparna will contribute   18000    
Sonia will contribute     42000    
Journal Entry          
Aparna's Capital A/c Dr 18000    
Sonia's Capital A/c Dr 42000    
             To Manisha's Capital A/c       60000  
▶ Video Solution: Coming Soon
Question 16
Old profit sharing ratio
A B C Total  
3 2 1 6  
B retires
 
New Profit sharing ratio
A C Total    
2 1 3    
Gaining ratio = New ratio - old ratio
 
A's gaining ratio 2/3 - 3/6 1/6  
C's Gaining Ratio 1/3 - 1/6 1/6  
Final Gaining ratio
A C Total    
1/6 1/6      
1 1 2    
B's share of Goodwill
Total Goodwill is     90000  
B's share 2/6 or 1/3      
B's share of Goodwill   30000  
         
A will contribute   15000  
C will contribute     15000  
Journal Entry
A's Capital A/c     15000  
C's Capital A/c   15000  
              To B's Capital A/c       30000
▶ Video Solution: Coming Soon
Question 17
Old profit sharing ratio
M N O Total  
         
3 2 1 6  
B retires
 
New Profit sharing ratio
M O Total    
1 1 2    
Gaining ratio = New ratio - old ratio
 
A's gaining ratio     1/2 - 3/6 0
C's Gaining Ratio   1/2 - 1/6 1/3
Only C has gained.        
Goodwill of the firm     60000  
N's share of Goodwill     20000  
Journal Entry
O's Capital A/c   Dr 20000  
              To N's Capital A/c       20000
▶ Video Solution: Coming Soon
Question 18
Old profit sharing ratio
Aman Bimal Deepak Total    
2 3 5 10    
Aman retires
 
New Profit sharing ratio Bimal Deepak Total
      1 1 2
Gaining ratio = New ratio - old ratio
 
Bimal's gaining ratio     1/2 - 3/10 1/5  
Deepak's Gaining Ratio     1/2 - 5/10 0  
Final Gaining ratio Bimal Deepak Total
      1/5 0  
      1   1
Only Bimal is Gaining
 
Aman's share of Goodwill
Total Goodwill is     37500    
Aman's share 2/10 or 1/5        
Aman's share of Goodwill   7500    
           
Bimal will contribute   7500    
Deepak will contribute     0    
Journal Entry
Bimal's Capital A/c   Dr 7500    
          To Aman's Capital A/c       7500  
▶ Video Solution: Coming Soon
Question 19
Old profit sharing ratio
A B C Total  
2 3 1 6  
B Retired
Gaining ratio
A C Total    
2 1 3    
Journal Entries
A's Capital A/c Dr..     100000  
B's Capital A/c Dr..   150000  
C's Capital A/c Dr..   50000  
       To Goodwill A/c     300000
(Being Goodwill existing in books written off)      
         
A's Capital A/c Dr..   180000 (270000*2/3)
C's Capital A/c Dr..   90000 (270000*1/3)
      To B's Capital A/c       270000
▶ Video Solution: Coming Soon
Question 20
Old profit sharing ratio
A B C D Total        
3 3 2 2 10        
D retires
 
New Profit sharing ratio
A B C Total          
                 
3 2 1 6          
Gaining Ratio
A B C            
1/5 1/30 -1/30            
Gain Gain Sacrifice            
Note : This question has Retirement + change in profit ratio
     
Goodwill of the firm 600000  
D's share of Goodwill 120000 (600000*2/10)
C's share of Goodwill 20000 (60000*1/30)
(Since C has also sacrificed so entry will be passed for his share of goodwill also)
     
A has Gained Goodwill share 120000  
B has Gained Goodwill share 20000  
     
Journal Entries  
A's Capital A/c Dr..     135000   (450000*3/10)   old ratio  
B's Capital A/c Dr..   135000   (450000*3/10)  
C's Capital A/c Dr..   90000   (450000*2/10)  
D's Capital A/c Dr..   90000   (450000*2/10)  
         To Goodwill A/c     450000        
(Being Goodwill existing in the books Written off)              
                 
A's Capital A/c Dr..   120000   (600000*1/5)  
B's Capital A/c Dr..   20000   (600000*1/30)  
       To C's Capital A/c     20000 (600000*1/30)  
       To D's Capital A/c     120000 (600000*1/5)  
(Being Goodwill adjusted on D's retirement)              
                 
Profit and Loss Appropriation A/c Dr..       1200000  
      To A's Capital A/c         600000 (1200000*3/6)  
      To B's Capital A/c         400000 (1200000*2/6)  
      To C's Capital A/c         200000 (1200000*1/6)  
(Bring Profits distributed among the partners)                
▶ Video Solution: Coming Soon

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