Question 1

T.S. Grewal Class 12 Chapter 5 Q.1 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 1
Tushar, Radha and Garv were partners sharing profits in the ratio of 1/2, 2/5 and 1/10. Find the new ratio of the remaining partners if Garv retires.
Solution
Old Ratio = 1/2 : 2/5 : 1/10 = 5 : 4 : 1. As no information is given about how Tushar and Radha acquire Garv&#8217;s share, the new ratio is obtained by simply striking out Garv&#8217;s share.
New Profit-Sharing Ratio (Tushar : Radha) = 5 : 4.

Question 2

T.S. Grewal Class 12 Chapter 5 Q.2 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 2
Calculate the new profit-sharing ratio: (a) Paras, Mohan and Hari shared profits in the ratio of 5 : 5 : 4. Mohan retired and his share was divided equally between Paras and Hari. (b) P, Q and R shared profits in the ratio of 5 : 4 : 1. P retires.
Solution
(a) Mohan&#8217;s share = 5/14, taken equally (1 : 1) &#8594; 5/28 each. Paras = 5/14 + 5/28 = 15/28; Hari = 4/14 + 5/28 = 13/28. New Ratio = 15 : 13.
(b) As no information is given, P&#8217;s share is struck out. New Ratio (Q : R)

Question 3

T.S. Grewal Class 12 Chapter 5 Q.3 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 3
R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M retires and his share is taken by R and S in the ratio of 1 : 2. Calculate the new profit-sharing ratio.
Solution
Old Ratio = 2 : 2 : 1. M&#8217;s share = 1/5, taken by R and S in 1 : 2 &#8594; R 1/15, S 2/15.

R = 2/5 + 1/15 = 6/15 + 1/15 = 7/15
S = 2/5 + 2/15 = 6/15 + 2/15 = 8/15

New Profit-Sharing Ratio (R : S) = 7 : 8.

Question 4

T.S. Grewal Class 12 Chapter 5 Q.4 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 4
X, Y and Z are partners sharing profits in the ratio of 1/2, 3/10 and 1/5. Calculate the gaining ratio of the remaining partners when Y retires.
Solution
Old Ratio = 5 : 3 : 2. New Ratio (Y&#8217;s share struck out) = 5 : 2.
Gain = New Share &#8211; Old Share: X = 5/7 &#8211; 5/10 = 15/70; Z = 2/7 &#8211; 2/10 = 6/70.
Gaining Ratio (X : Z) = 15 : 6 = 5 : 2.

Question 5

T.S. Grewal Class 12 Chapter 5 Q.5 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 5
Sarthak, Vansh and Mansi were partners sharing profits in the ratio of 4 : 3 : 2. Sarthak retires, and Vansh and Mansi decide to share future profits in the ratio of 2 : 1. Determine the gaining ratio.
Solution
Gain = New Share &#8211; Old Share: Vansh = 2/3 &#8211; 3/9 = 6/9 &#8211; 3/9 = 3/9; Mansi = 1/3 &#8211; 2/9 = 3/9 &#8211; 2/9 = 1/9.
Gaining Ratio (Vansh : Mansi) = 3 : 1.

Question 6

T.S. Grewal Class 12 Chapter 5 Q.6 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 6
(a) W, X, Y and Z are partners sharing profits in the ratio of 1/3, 1/6, 1/3 and 1/6. Y retires and W, X and Z share future profits equally. Calculate the gaining ratio. (b) A, B and C share profits in the ratio of 4 : 3 : 2. C retires; A acquires 4/9 of C&#8217;s share and the balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio.
Solution
(a) Old Ratio = 2 : 1 : 2 : 1. New Ratio (W : X : Z) = 1 : 1 : 1. Gain = New &#8211; Old: W = 1/3 &#8211; 2/6 = 0; X

Question 7

T.S. Grewal Class 12 Chapter 5 Q.7 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 7
Kumar, Lakshya, Manoj and Naresh are partners sharing profits in the ratio of 3 : 2 : 1 : 4. Kumar retires and his share is acquired by Lakshya and Manoj in the ratio of 3 : 2. Calculate the new profit-sharing ratio and the gaining ratio.
Solution
Kumar&#8217;s share = 3/10, acquired in 3 : 2 &#8594; Lakshya 9/50, Manoj 6/50.

Lakshya = 2/10 + 9/50 = 10/50 + 9/50 = 19/50
Manoj = 1/10 + 6/50 = 5/50 + 6/50 = 11/50
Naresh = 4/10 = 20/50 (unchanged)

New Profit-Sharing Ratio = 19 : 11 : 2

Question 8

T.S. Grewal Class 12 Chapter 5 Q.8 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 8
A, B and C were partners in a firm sharing profits in the ratio of 8 : 4 : 3. B retires and his share is taken up equally by A and C. Find the new profit-sharing ratio.
Solution
B&#8217;s share = 4/15, taken equally &#8594; 2/15 each. A = 8/15 + 2/15 = 10/15; C = 3/15 + 2/15 = 5/15.
New Profit-Sharing Ratio (A : C) = 10 : 5 = 2 : 1.

Question 9

T.S. Grewal Class 12 Chapter 5 Q.9 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 9
A, B and C are partners sharing profits in the ratio of 5 : 3 : 2. C retires and his share is taken by A. Calculate the new profit-sharing ratio of A and B.
Solution
C&#8217;s share = 2/10, taken entirely by A. A = 5/10 + 2/10 = 7/10; B = 3/10 (unchanged).
New Profit-Sharing Ratio (A : B) = 7 : 3.

Question 10

T.S. Grewal Class 12 Chapter 5 Q.10 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 10
Murli, Naveen and Omprakash are partners sharing profits in the ratio of 3/8, 1/2 and 1/8. Murli retires and surrenders 2/3rd of his share in favour of Naveen and the remaining share in favour of Omprakash. Calculate the new profit-sharing ratio and the gaining ratio.
Solution
Old Ratio = 3 : 4 : 1. Murli&#8217;s share = 3/8: Naveen acquires 3/8 &#215; 2/3 = 2/8; Omprakash acquires 3/8 &#8211; 2/8 = 1/8.

Naveen = 4/8 + 2/8 = 6/8
Omprakash = 1/8 + 1/8 = 2/8

New Profit-Sharing Ratio

Question 11

T.S. Grewal Class 12 Chapter 5 Q.11 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 11
P, Q and R are partners sharing profits in the ratio of 7 : 5 : 3. P retires and it is decided that the profit-sharing ratio between Q and R will be the same as that existing between P and Q. Calculate the new profit-sharing ratio and gaining ratio.
Solution
New Ratio (Q : R) = 7 : 5 (same as the old P : Q). Gain = New Share &#8211; Old Share:

Q = 7/12 &#8211; 5/15 = 35/60 &#8211; 20/60 = 15/60
R = 5/12 &#8211; 3/15 = 25/60 &#8211; 12/60 = 13/60

New Ratio = 7 : 5; Gaining Ratio (Q

Question 12

T.S. Grewal Class 12 Chapter 5 Q.12 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 12
Sunil, Shahid and David are partners sharing profits and losses in the ratio of 4 : 3 : 2. Shahid retires and the goodwill is valued at &#8377;72,000. Sunil and David decide to share future profits and losses in the ratio of 5 : 3. Calculate Shahid&#8217;s share of goodwill and pass the Journal entry for goodwill.
Solution
Shahid&#8217;s share of goodwill = &#8377;72,000 &#215; 3/9 = &#8377;24,000. Gaining ratio: Sunil = 5/8 &#8211; 4/9 = 13/72; David = 3/8 &#8211; 2/9 = 11/72 &#8594

Question 13

T.S. Grewal Class 12 Chapter 5 Q.13 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 13
P, Q, R and S were partners sharing profits in the ratio of 5 : 3 : 1 : 1. On 1st January, 2024, S retired. Goodwill of the firm was valued at &#8377;4,20,000. The new profit-sharing ratio among P, Q and R is 4 : 3 : 3. Pass the necessary Journal entry for the treatment of goodwill.
Solution
Gain / (Sacrifice) = New &#8211; Old: P = 4/10 &#8211; 5/10 = &#8211;1/10 (Sacrifice); Q = Nil; R = 3/10 &#8211; 1/10 = 2/10 (Gain). S&#8217;s share = &#8377;4,20,000 &#215; 1/10 = &#8377;42,000.

Question 14

T.S. Grewal Class 12 Chapter 5 Q.14 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 14
Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3 : 2 : 1. Manisha retired and goodwill of the firm is valued at &#8377;1,80,000. Aparna and Sonia decide to share future profits in the ratio of 3 : 2. Pass the necessary Journal entries.
Solution
Manisha&#8217;s share = &#8377;1,80,000 &#215; 2/6 = &#8377;60,000. Gaining ratio: Aparna = 3/5 &#8211; 3/6 = 3/30; Sonia = 2/5 &#8211; 1/6 = 7/30 &#8594; 3 : 7.
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Ap

Question 15

T.S. Grewal Class 12 Chapter 5 Q.15 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 15
A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. B retired and the new profit-sharing ratio between A and C was 2 : 1. On B&#8217;s retirement, goodwill of the firm was valued at &#8377;90,000. Pass the necessary Journal entry for the treatment of goodwill.
Solution
B&#8217;s share = &#8377;90,000 &#215; 2/6 = &#8377;30,000. Gaining ratio: A = 2/3 &#8211; 3/6 = 1/6; C = 1/3 &#8211; 1/6 = 1/6 &#8594; 1 : 1.
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
A&#82

Question 16

T.S. Grewal Class 12 Chapter 5 Q.16 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 16
Aman, Bimal and Deepak are partners sharing profits in the ratio of 2 : 3 : 5. Goodwill of the firm has been valued at &#8377;37,500. Aman retired; Bimal and Deepak decide to share profits equally in future. Calculate the gain/sacrifice of Bimal and Deepak and pass the necessary Journal entry for goodwill. (CBSE 2019)
Solution
Gain / (Sacrifice): Bimal = 1/2 &#8211; 3/10 = 2/10 (Gain); Deepak = 1/2 &#8211; 5/10 = Nil. Aman&#8217;s share = &#8377;37,500 &#215; 2/10 = &#8377;7,500, bor

Question 17

T.S. Grewal Class 12 Chapter 5 Q.17 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 17
M, N and O are partners sharing profits in the ratio of 3 : 2 : 1. Goodwill has been valued at &#8377;60,000. On N&#8217;s retirement, M and O agree to share profits equally. Pass the necessary Journal entry for the treatment of N&#8217;s share of goodwill.
Solution
N&#8217;s share = &#8377;60,000 &#215; 2/6 = &#8377;20,000. Gaining ratio: M = 1/2 &#8211; 3/6 = Nil; O = 1/2 &#8211; 1/6 = 2/6 (Gain). N&#8217;s share is borne entirely by O.
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr.

Question 18

T.S. Grewal Class 12 Chapter 5 Q.18 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 18
A, B, C and D are partners sharing profits in the ratio of 3 : 3 : 2 : 2. D retires and A, B and C decide to share future profits in the ratio of 3 : 2 : 1. Goodwill of the firm is valued at &#8377;6,00,000, and goodwill already exists in the books at &#8377;4,50,000. Profit for the first year after D&#8217;s retirement was &#8377;12,00,000. Give the necessary Journal entries to record goodwill and to distribute the profits.
Solution
Gain / (Sacrifice): A = 3/10 &#8211; 3/6 = &#8211;

Question 19

T.S. Grewal Class 12 Chapter 5 Q.19 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 19
A, B and C are partners sharing profits in the ratio of 4/9 : 3/9 : 2/9. B retires and his capital, after making adjustments for reserves and gain on revaluation, stands at &#8377;1,39,200. A and C agree to pay him &#8377;1,50,000 in full settlement. Record the necessary Journal entry for the adjustment of goodwill if the new profit-sharing ratio is 5 : 3.
Solution
Hidden Goodwill (B&#8217;s share) = &#8377;1,50,000 &#8211; &#8377;1,39,200 = &#8377;10,800. Gaining ratio: A = 5/8 &#82

Question 20

T.S. Grewal Class 12 Chapter 5 Q.20 - Retirement of a Partner

Sarbjit Singh · Accepted Answer

Question 20
Shivam, Kapil and Deepak are partners sharing profits in the ratio of 3 : 1 : 2. On 31st March, 2024, Kapil retired and his Capital Account, after adjustments of reserve and profit on revaluation, was &#8377;3,50,000. Shivam and Deepak paid him &#8377;4,20,000 in settlement of his claim, and a computer of &#8377;4,20,000 was given to Kapil. Pass the necessary Journal entries.
Solution
Hidden Goodwill (Kapil&#8217;s share) = &#8377;4,20,000 &#8211; &#8377;3,50,000 = &#8377;70,000, bor

T.S. Grewal Class 12 Vol 1 2025-2026 Solutions Chapter 5 - Retirement of a Partner

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Table of Contents

T.S. Grewal Class 12 Chapter 5 Q.1 - Retirement of a Partner

Question 1

Solution

T.S. Grewal Class 12 Chapter 5 Q.2 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.3 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.4 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.5 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.6 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.7 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.8 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.9 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.10 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.11 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.12 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.13 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.14 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.15 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.16 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.17 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.18 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.19 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.20 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.21 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.22 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.23 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.24 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.25 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.26 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.27 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.28 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.29 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.30 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.31 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.32 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.33 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.34 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.35 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.36 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.37 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.38 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.39 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.40 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.41 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.42 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.43 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.44 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.45 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.46 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.47 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.48 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.49 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.50 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.51 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.52 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.53 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.54 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.55 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.56 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.57 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.58 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.59 - Retirement of a Partner

T.S. Grewal Class 12 Chapter 5 Q.60 - Retirement of a Partner

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