T S Grewal Solutions 2026-27 [Class 12] – Retirement of a Partner – Q 31 to 40

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Solution for Q 31 to 40 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 treatment of reserves and acumulated profits on the reirement of a partner, preparation of revaluation A/c, partners capital A/c and balance sheet, settlement of loan account of retiring 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 31

Old profit sharing ratio			X	Y	Z	Total
			1	1	1	3

Laxman retires

New Profit sharing ratio			X	Y	Total
			3	2	5

Gaining ratio = New ratio - old ratio

X's gaining ratio		3/5-1/3	4/15
Y's Gaining Ratio		2/5-1/3	1/15

Final Gaining Ratio			X	Y	Total
			4	1	5

Z's Sacrifice		15000
X's Gain		12000
Y's Gain		3000

Journal Entry

X's Capital A/c Dr..	12000
Y's Capital A/c Dr..	3000
To Z's Capital A/c		15000

▶ Video Solution: Coming Soon

Question 32

Old Profit Sharing Ratio			Naval	Nyaya	Nritya	Total
			3	5	2	10

As nothing is given, so the gaining ratio and new ratio will be same as old ratio

New Profit sharing ratio			Naval	Nritya	Total
			3	2	5

Gaining ratio			Naval	Nritya	Total
			3	2	5

Goodwill Journal Entry

Naval Capital A/c Dr..	36000		(60000*3/5)
Nritya Capital A/c Dr..	24000		(60000*2/5)
To Nyaya Capital A/c		60000	(120000*5/10)

Revaluation A/c

Particulars	Amount	Particulars	Amount
To Plant & Mach	20000	By Land and Buildings	50000
		By Prov for Bad Debts	5000
		By Investmens	65000




To Profit on Revaluation :
To Naval's Capital A/c	30000
To Nyaya's Capital A/c	50000
To Nritya's Capital A/c	20000


	120000		120000

Partners Capital A/c

Particulars	Naval	Nyaya	Nritya	Particulars	Naval	Nyaya	Nritya
				By Balance B/d	200000	300000	500000
By Deferred Rev	15000	25000	10000	By Revaluation A/c	30000	50000	20000
To Nyaya's Capital A/c	36000		24000	By Naval's Capital A/c		36000
				By Nritya's Capital A/c		24000
				By General Reserve	24000	40000	16000
				By WCR	6000	10000	4000
To Nyaya Loan A/c		435000
To Balance c/d	209000		506000

Total	260000	460000	540000	Total	260000	460000	540000

Balance Sheet
Liabilities	Amount	Assets	Amount
Capitals		Land & Building	1000000
Naval's Capital A/c	209000	Plant & Machinery	180000
Nritya's Capital A/c	506000	Furniture	50000
WCC	30000	Stock	70000
Mrs Naval Loan	200000	Sundry Debtors	95000
Sundry Creditors	150000	Bank	70000
Nyaya Loan	435000	Investments	65000

	1530000		1530000

Working Notes :
Distribution of General Reserves
Total General reserve	80000
Naval Share	24000	(80000*3/10)
Nyaya Share	40000	(80000*5/10)
Nritya Share	16000	(80000*2/10)

Goodwill adjustment :
Goodwill of the firm	120000
Nyaya share of goodwill	60000	(120000*5/10)

Naval Pays	36000	(60000*3/5)
Nritya Pays	24000	(60000*2/5)

Workmen Compensation Reserve adjustment :
WCR	50000
Workmen compensation claim	30000
Extra reserve	20000	(50000-30000)

WCR A/c Dr..	50000
To WCC A/c		30000
To Naval Capital A/c		6000
To Nyaya Capital A/c		10000
To Nritya Capital A/c		4000

Deferred Revenue Expenditure
Total Deferred Revenue	50000
Naval Share	15000	(50000*3/10)
Nyaya Share	25000	(50000*5/10)
Nritya Share	10000	(50000*2/10)

▶ Video Solution: Coming Soon

Question 33

Old Profit Sharing Ratio			Alfa	Beta	Gama	Total
			5	3	2	10

As nothing is given so the gaining ratio and new ratio will be same as old ratio

New Profit sharing ratio			Alfa	Gama	Total
			5	2	7

Gaining ratio			Alfa	Gama	Total
			5	2	7

Goodwill Journal Entry
Alfa Capital A/c Dr..	30000
Gama Capital A/c Dr..	40000
To Beta Capital A/c		70000

Revaluation A/c

Particulars	Amount	Particulars	Amount
		By Stock A/c	10000
		By Building	50000
		By Cash (Profit on investments)	20000




To Profit on Revaluation :
To Alfa's Capital A/c	40000
To Beta's Capital A/c	24000
To Gama's Capital A/c	16000


	80000		80000

Working Note :

Journal entry for Investments

Bank A/c Dr..	270000
To Investment A/c		250000
To Revaluation A/c		20000

Partners Capital A/c
Particulars	Alfa	Beta	Gama	Particulars	Alfa	Beta	Gama
				By Balance B/d	300000	200000	200000
				By Revaluation A/c-Profit	40000	24000	16000
To Beta's Capital A/c	30000		40000	By Alfa's Capital A/c		30000
				By Gama's Capital A/c		40000
				By General Reserve	50000	30000	20000

To Bank A/c		324000
To Balance c/d	360000		196000

Total	390000	324000	236000	Total	390000	324000	236000

Balance Sheet
Liabilities	Amount	Assets	Amount
Sundry Creditors	100000	Building	300000
Alfa's Capital A/c	360000	Machinery	150000
Gama's Capital A/c	196000	Debtors	100000
		Stock	60000
		Cash at Bank	46000
		(100000+270000-324000)
	656000		656000

▶ Video Solution: Coming Soon

Question 34

N's Capital A/c Dr..		15000
S's Capital A/c Dr..		22500
G's Capital A/c Dr..		37500
	To Profit and loss A/c		75000

General Reserve A/c Dr..		90000
	To N's Capital A/c		18000	90000*2/10
	To S's Capital A/c		27000	90000*3/10
	To G's Capital A/c		45000	90000*5/10

Provision for Bad Debts A/c Dr..		6000
	To Debtors A/c		6000

Provision for Bad Debts A/c Dr..		2550		(see notes below)
	To Revaluation A/c		2550
(Excess Provision for Bad Debts Reversed)

Revaluation A/c Dr..		135000
	To Patents		90000
	To Stock		7500
	To Machinery		22500
	To Building		15000

Revaluation A/c Dr..		30000
	To Creditors A/c		30000

N's Capital A/c Dr..		18000		(45000*2/5)
S's Capital A/c Dr..		27000		(45000*3/5)
	To G's Capital A/c		45000	(90000*5/10)
(Being Goodwill adjustment)

N's Capital A/c Dr..		32490
S's Capital A/c Dr..		48735
G's Capital A/c Dr..		81225
	To Revaluation A/c		162450
(Being revaluation loss)

G's Capital A/c Dr..		421275
	To G's Loan A/c		421275	increase
	g amount will be paid in future

Working Note :

Calculation of Sacrificing Ratio

Old Profit Sharing Ratio			N	S	G	Total
			2	3	5	10

New Profit sharing ratio			N	S	Total
			2	3	5

Gaining Ratio	N	S	Total
	1/5	3/10	1/2
	2	3	5

Calculation of Share of Goodwill

Value of Firms Goodwill			90000
G's share in Profits			1/2
G's share of Goodwill			45000

N will contribute			18000
S will contribute			27000

Calculation of Provision for Bad Debts

Debtors Current Balance			135000
Less - Bad Debts			6000
Balance Debtors			129000
Provision Required @ 5%			6450

Existing Provision			15000
Less - Bad Debts			6000
Balance provision			9000
Required Provision @ 5%			6450
Excess Provison Reversed			2550

Revaluation A/c

Particulars	Amount	Particulars	Amount
To Patents	90000	By Prov for Bad Debts	2550
To Machinery	22500
To Building	15000
To Creditors	30000
To Stock A/c	7500


		By Loss on evaluation :
		By N's Capital A/c	32490
		By S's Capital A/c	48735
		By G's Capital A/c	81225


	165000		165000

Partners Capital A/c
Particulars	N	S	G	Particulars	N	S	G
				By Balance B/d	225000	375000	450000
To Revaluation A/c	32490	48735	81225
To G's Capital A/c	18000	27000	0	By N's Capital A/c			18000
To Profit and loss A/c	15000	22500	37500	By S's Capital A/c			27000
				By General Reserve	18000	27000	45000

To G's Loan A/c			421275
To Balance c/d	177510	303765

Total	243000	402000	540000	Total	243000	402000	540000

▶ Video Solution: Coming Soon

Question 35

Goodwill adjustment

Goodwill of the firm				240000
Chaman's share in profits				1/6

Chaman's share in Goodwill				40000
Bhaskar share in Goodwill				24000.0

Ashok contributes towards Goodwill				64000

Old Profit Sharing Ratio	Ashok	Bhaskar	Chaman	Total
	1/3	1/2	1/6	1/1
	2	3	1	6

New Profit sharing ratio			Ashok	Bhaskar	Total
			3	2	5

Gaining Ratio	Ashok	Bhaskar	Total
	4/15	-1/10
	Gain	Sacrifice

Journal Entry

Ashok Capital A/c	64000
To Bhaskar Capital A/c		24000.0
To Chaman Capital A/c		40000

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Plant and Machinery	40000	By Stock	37500
To Furniture	5000	By Building	50000
To Prov for Doubtful Debts	15000


To Profit on Revaluation :
To Profit on Revaluation :	9167
To Ashok's Capital A/c	13750
To Bhaskar's Capital A/c	4583
To Chaman's Capital A/c

	87500		87500

Partners Capital A/c
Particulars	Ashok	Bhaskar	Chaman	Particulars	Ashok	Bhaskar	Chaman
				By Balance B/d	300000	400000	250000
				By Revaluation A/c-Profit	9167	13750	4583
To Bhaskar's Capital A/c	24000			By Ashok's Capital A/c		24000	40000
To Chaman's Capital A/c	40000			By General Reserve	73333	110000	36667
To Advertisement Suspense	20000	30000	10000

To Chaman's Loan A/c			321250.0
To Balance c/d	298500	517750

Total	382500	547750	331250	Total	382500	547750	331250

Balance Sheet
Liabilities	Amount	Assets		Amount
Sundry Creditors	250000	Building		550000
Loan Payable	150000	Plant and Machinery		360000
Ashok's Capital A/c	298500	Furniture		95000
Bhaskar's Capital A/c	517750	Stock		287500
Chaman Loan A/c	321250	Debtors	180000
		Less - Prov	20000	160000
		Cash in Hand		85000


	1537500			1537500

▶ Video Solution: Coming Soon

Question 36

Goodwill
Total Goodwill of the firm	14000
B Retired
B's share in Goodwill	4200

Old Profit Sharing Ratio			A	B	C	Total
			4	3	3	10

New Profit sharing ratio			A	C	Total
			4	3	7

** For New Profit sharing ratio no information given in question so considered as same

Gaining ratio = New ratio - old ratio

** Though no need to calculate,it will be same

A's gaining ratio		4/7 - 4/10	6/35
C's Gaining Ratio		3/7 - 3/10	9/70

Final Gaining Ratio		A	C	Total
		4	3	7

A Contribute	2400
C Contribute	1800

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Plant & Machinery	2800	By Stock	2000
To Computer Printer	800	By Land & Buildings	3600
To Prov for Legal Charges	2000	By Prov for Doubtful Debts	2000




To Profit on Revaluation :
To A's Capital A/c	800
To B's Capital A/c	600
To C's Capital A/c	600


	7600		7600

Partners Capital A/c
Particulars	A	B	C	Particulars	A	B	C
				By Balance B/d	32000	24000	20000
				By Revaluation A/c-Profit	800	600	600
To B's Capital A/c	2400		1800	By A's Capital A/c		2400
				By C's Capital A/c		1800
				By General Reserve	8000	6000	6000

To B's Loan A/c		34800
To Balance c/d	38400		24800

Total	40800	34800	26600	Total	40800	34800	26600

Balance Sheet
Liabilities	Amount	Assets	Amount
Creditors	7000	Land & Building	39600
Bills Payable	3000	Plant & Machinery	25200
Prov for Legal Charges	2000	Computer Printer	7200
		Stock	22000
A's Capital A/c	38400	Sundry Debtors	14000
C's Capital A/c	24800	Bank	2000
B's Loan A/c	34800


	110000		110000

▶ Video Solution: Coming Soon

Question 37

Goodwill
Total Goodwill of the firm	34800	(As per Question)
Z Retired
Z's share in Goodwill	5800	(34800*1/6)

Old Profit Sharing Ratio			X	Y	Z	Total
			3	2	1	6

New Profit sharing ratio			X	Y	Total
			3	2	5

Gaining ratio = New ratio - old ratio	** Though no need to calculate,it will be same

X's gaining ratio			3/5 -3/6	1/10
Y's Gaining Ratio			2/5 - 2/6	1/15

Final Gaining Ratio			X	Y	Total
			3	2	5

X Contribute	3480
Z Contribute	2320

Journal Entry

X Capital A/c Dr..	3480		(5800*3/5)
Y Capital A/c Dr..	2320		(5800*2/5)
To Z Capital A/c		5800
(Being Goodwill at the time of retirment of Z)

X Capital A/c Dr..	3000
Y Capital A/c Dr..	2000
Z Capital A/c Dr..	1000
To Goodwill A/c		6000
(Goodwill existing in the books written off)

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Patents	2000	By Investments	2600
To Machinery	5000	By Creditors	4000
To Prov for Doubtful Debts	400


		By Loss on Revaluation :
		By X's Capital A/c	400
		By Y's Capital A/c	267
		By Z's Capital A/c	133


	7400		7400

Partners Capital A/c
Particulars	X	Y	Z	Particulars	X	Y	Z
				By Balance B/d	68000	32000	21000
To Revaluation A/c-Loss	400	267	133
To Z's Capital A/c	3480	2320		By X's Capital A/c			3480
To Advertisement Exp	2625	1750	875	By Y's Capital A/c			2320
To Goodwill	3000	2000	1000	By Workmen Com Res	5625	3750	1875
To Investments			17600	By Investment Fluc Res	3000	2000	1000
To Bank A/c			5067
To Bills Payable (Z)			2500
To Z's Loan A/c			2500
To Balance c/d	67120	31413

Total	76625	37750	29675	Total	76625	37750	29675

Journal entry for Z settlement for reference :
Z Capital A/c Dr..	10067
To Bank A/c		5067
To Z Loan A/c		2500	one year
To Bills Payable		2500	liability

Balance Sheet

Liabilities	Amount	Assets		Amount
Creditors	17000	Cash at Bank		683
		(5750-5067)
Liability for Workmen Comp	750	Debtors	40000
Bills Payable	2500	Less - Prov	2400	37600
Z's Loan A/c	2500	Stock		30000
X's Capital A/c	67120	Patents		8000
		(10000-2000)
Y's Capital A/c	31413	Machinery		45000
		(50000-5000)


	121283			121283

Working Note :

Amount due to Z
Total Amount due				10067
Less - Paid immediately				5067
Balance Due				5000
50% of Balance (Loan A/c)				2500
Bills Payable				2500

Journal entries (not asked in question but given here for benefit of students)

Workmen Compensation Reserve A/c Dr..	12000
To Workmen Compensation Claim		750
To X Capital A/c		5625
To Y Capital A/c		3750
To Z Capital A/c		1875

Investment Fluctuation Reserve A/c Dr..	6000
To X Capital A/c		3000
To Y Capital A/c		2000
To Z Capital A/c		1000

Z Capital A/c Dr..	17600
To Investment A/c		17600


X Capital A/c Dr..	2625
Y Capital A/c Dr..	1750
Z Capital A/c Dr..	875
To Adv Suspense A/c		5250

Z Capital A/c	10067
To Bank a/c		5067
To Z Loan A/c		2500
To Bills Payable A/c		2500

▶ Video Solution: Coming Soon

Question 38

Bhaskar Loan A/c
Date	Particulars	Amount	Date	Particulars	Amount
31-Mar-24	To Bank A/c	130000	01-Apr-23	By Bhaskar Capital A/c	300000
31-Mar-24	To Balance C/d	200000	31-Mar-24	By Interest	30000
				(300000X10/100)

	Total	330000		Total	330000

31-Mar-25	To Bank A/c	120000	01-Apr-24	By Balance B/d	200000
31-Mar-25	To Balance C/d	100000	31-Mar-25	By Interest	20000
				(200000X10/100)

	Total	220000		Total	220000

31-Mar-26	To Bank A/c	110000	01-Apr-25	By Balance B/d	100000
			31-Mar-26	By Interest	10000
				(100000X10/100)

	Total	110000		Total	110000

▶ Video Solution: Coming Soon

Question 39

Rakesh Loan A/c
Date	Particulars	Amount	Date	Particulars	Amount	Explanation
Yr 1 (End))	To Bank A/c	26000	Yr 1 (Begin))	By Rakesh Capital A/c	60000	(90000-30000)
Yr 1 (End))	To Balance C/d	40000	Yr 1 (End))	By Interest	6000	(60000*10/100)

	Total	66000		Total	66000

Yr 2 (End))	To Bank A/c	26000	Yr 2 (Begin))	By Balance B/d	40000
Yr 2 (End))	To Balance C/d	18000	Yr 2 (End))	By Interest	4000	(10/100*40000)

	Total	44000		Total	44000

Yr 3 (End))	To Bank A/c	19800	Yr 3 (Begin))	By Balance B/d	18000
			Yr 3 (End))	By Interest	1800	(10/100*18000)

	Total	19800		Total	19800

▶ Video Solution: Coming Soon

Question 40

Explanation

	Unrecorded Furniture			Unrecorded Liability
	9000			18000
1st Half		2nd Half	1st Half		2nd Half
4500		4500	9000		9000
Given to settle UL			Settled through UA
Of Rs 9000		Taken by Manohar at
		4050

Journal entries

Furniture A/c Dr..			4050
To Revaluation A/c				4050

Manohar Capital A/c Dr..			4050
To Furniture A/c				4050
		or
Manohar Capital A/c Dr..			4050
To Revaluation A/c				4050

Revaluation A/c Dr..			9000
	To Unrecorded Liability A/c			9000

Note :

No entry to be made for settlement of unrecorded liability against unrecorded asset

(Out of unrecorded liability of Rs 18000, Rs 9000 settled through unrecorded asset - No entry passed for the same)

(Balance Rs 9000 unrecorded liability the above entry is passed )

Manohar Capital A/c Dr..		4050
	To Revaluation A/c		4050

Ram Capital A/c Dr..		1650
Manohar Capital A/c Dr..		1650
Joshi Capital A/c Dr..		1650
	To Revaluation A/c		4950

Manohar Capital A/c Dr..		174300		(180000-4050-1650)
	To Bank A/c		174300

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Unrecorded Liability	9000	By Furniture A/c	4050






		By Loss on Revaluation :
		By Ram's Capital A/c	1650
		By Manohar Capital A/c	1650
		By Joshi Capital A/c	1650


	9000		9000

Manohar Capital A/c
Particulars	Amount	Particulars	Amount
To Revaluation A/c	1650	By Balance B/d	180000
To Furniture	4050
To Bank A/c	174300
Total	180000	Total	180000

▶ Video Solution: Coming Soon

General Reserve

Workmen Compensation Reserve

Less - Profit and Loss A/c

Less - Advertisement Suspense A/c