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

Solution for Q 41 to 50 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 accumulated profits on the retirement of a partner, preparation of revaluation A/c, partners capital A/c and balance sheet, settlement of loan account of retiring partner and capital adjustment

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 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

Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-50 | Q 51-60 |

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

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

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