Question 1

Q.No.1 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 01 Chapter 6 of +2-A
01. A, B and C were partners sharing profits in the ratio of 1/2, 2/5 and 1/10. Find the new ratio of the remaining partners if C retires.
 
The solution of Question 01 Chapter 6 of +2-A: -

Old Ratio A, B and C 
=
1
:
2
:
1

2
5
10

=
5
:
4
:
1

As we can see, no information is given as to how A and B are acquiring C's profit share after his retirement, so the new profit sharing ratio between A and B is calculated just by crossing out the C’s share. That is, the new ratio becomes 5 : 4.
∴ New Profit Ratio A and B = 5 : 4

Question 2

Q.No.2 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 02 Chapter 6 of +2-A
02. From the following particulars, calculate new profit-sharing ratio of the partners: a Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5 : 5 : 4. Mohan retired and his share was divided equally between Shiv and Hari. b P, Q and R were partners sharing profits in the ratio of 5 : 4 : 1. P retires from the firm.
 
The solution of Question 02 Chapter 6 of +2-A: -
a
Old Ratio Shiv, Mohan and Hari = 5 : 5 : 4

Mohan’s Profit Share
=
5

Question 3

Q.No.3 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 03 Chapter 6 of +2-A
03. R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M decides to retire from the business and his share is taken by R and S in the ratio of 1 : 2. Calculate the new profit sharing ratio.
 
The solution of Question 03 Chapter 6 of +2-A: -
a
Old Ratio R ,S and M = 2 : 2 : 1M retires from the firm.

His profit share
=
1

5

M’s share taken by R and S in ratio of 1 : 2

Share taken by R
=
1
X
1

5
3

=
1

15

Share taken

Question 4

Q.No.4 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 04 Chapter 6 of +2-A
04. A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. A retires, assuming B and C will share profits in the ratio of 2 : 1. Determine the gaining ratio
 
The solution of Question 04 Chapter 6 of +2-A: -
a
Old Ratio A ,B and C = 4 : 3 : 2New Ratio BandC = 2 : 1Gaining Ratio New Ratio − Old Ratio

B’s Gain
=
2
-
3

3
9

=
6 - 3

9

=
3

9

C’s Gain
=
1
-
2

3
9

=
3 - 2

9

=
1

9

∴Gaining Ratio = 3 : 1

Question 5

Q.No.5 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 05 Chapter 6 of +2-A
05. X, Y and Z are partners sharing profits in the ratio of 1/2, 3/10, and 1/5. Calculate the gaining ratio of remaining partners when Y retires from the firm.
 
The solution of Question 05 Chapter 6 of +2-A: -

Old Ratio X, Y and Z
=
1
:
3
:
1

2
10
5

New Ratio after Y's retirement = 5 : 2Gaining Share = New Share – Old Share

X's Gain
=
5
-
5

7
10

=
50 -  35

70

=
15

70

Z's Gain
=
2
-
2

7
10

=
20 - 14

70

=
6

Question 6

Q.No.6 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 06 Chapter 6 of +2-A
06. a W, X, Y and Z are partners sharing profits and losses in the ratio of 1/3, 1/6, 1/3 and 1/6 respectively. Y retires and W, X and Z decide to share the profits and losses equally in future. Calculate gaining ratio. b A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2. C retires from the business. A is acquiring 4/9 of C's share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio.
 
The solution of Qu

Question 7

Q.No.7 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 07 Chapter 6 of +2-A
07. 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 new profit-sharing ratio and gaining ratio of the remaining partners.
 
The solution of Question 07 Chapter 6 of +2-A: -

Kumar's share
=
3

10

Share acquired by Lakshya
=
3
X
3

10
5

=
9

50

Share acquired by Manoj
=
3
X
2

10
5

=
6

Question 8

Q.No.8 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 08 Chapter 6 of +2-A
08. 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
 
The solution of Question 08 Chapter 6 of +2-A: -
 
Old Ratio A, B and C = 8 : 4 : 3B retires from the firm

His profit share
=
4

15

B’s share taken by A and C in ratio of 1 : 1

Share taken by A
=
4
X
1

15
2

=
2

30

Share taken by C
=
4
X
1

15
2

=
2

30

Question 9

Q.No.9 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 09 Chapter 6 of +2-A
09. 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 new profit-sharing ratio of A and B
 
The solution of Question 09 Chapter 6 of +2-A: -
 
Old Ratio A, B and C = 5 : 3 : 2C retires from the firm.

His profit share
=
2

10

New Ratio = Old Ratio + Share acquired from C

A's New Share
=
5
+
2

10
10

=
5 + 2

10

=
7

10

∴ New Profit Ratio A and B = 7 : 3
 
 
T.S. Grewa

Question 10

Q.No.10 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 10 Chapter 6 of +2-A
10. P, Q and R are partners sharing profits in the ratio of 7 : 5 : 3. P retires and it is decided that profit-sharing ratio between Q and R will be same as existing between P and Q. Calculate New profit-sharing ratio and Gaining Ratio.
 
The solution of Question 10 Chapter 6 of +2-A: -
 
Calculation of Gaining RatioP :Q :R = 7:5:3(Old ratio)Q :R=7:5 (New ratio, same as between P & Q)
Gaining Ratio = New Ratio - Old Ratio

Q's Gain
=
7
-
5

12
15

=
35

Question 11

Q.No.11 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 11 Chapter 6 of +2-A
11. 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 remaining share in favour of Omprakash. Calculate new profit-sharing ratio and gaining ratio of the remaining partners.
 
The solution of Question 11 Chapter 6 of +2-A: -
 
Old Ratio = 3:4:1

Murli's share
=
8

8

Share acquired by Naveen 
=
3
X
3

8
3

=
8

8

Remaining Sh

Question 12

Q.No.12 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 12 Chapter 6 of +2-A
12. A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. B decides to retire from the firm. Calculate new profit-sharing ratio of A and C in the following circumstances: a If B gives his share to A and C in the original ratio of A and C. b If B gives his share to A and C in equal proportion. c If B gives his share to A and C in the ratio of 3 : 1. d If B gives his share to A only. 
 
The solution of Question 12 Chapter 6 of +2-A:

Question 13

Q.No.13 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 13 Chapter 6 of +2-A
13. L, M, and O are partners sharing profits and losses in the ratio of 4 : 3 : 2. M retires and the goodwill is valued at 72,000. Calculate M's share of goodwill and pass the Journal entry for Goodwill. L and O decided to share the future profits and losses in the ratio of 5 : 3.
The solution of Question 13 Chapter 6 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

L’s Capital A/c
Dr
 
13,000

O’s Capital A/c
Dr
 
11,000

To M’s Capital A/c
 
 
 
2

Question 14

Q.No.14 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 14 Chapter 6 of +2-A
14. P, Q, R, and S were partners in firm sharing profits in the ratio of 5 : 3 : 1: 1. On 1st January 2019, S retired from the firm. On S's retirement, the goodwill of the firm was valued at 4,20,000.The new profit-sharing ratio among P, Q, and R will be 4 : 3 : 3.Showing your working notes clearly, pass necessary journal entry for the treatment of goodwill in the books of the firm on S's retirement.
The solution of Question 14 Chapter 6 of +2-A: -

Date
Partic

Question 15

Q.No.15 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 15 Chapter 6 of +2-A
Aparna, Manisha, and Sonia are partners sharing profits in the ratio of 3: 2: 1. Manisha retired and the goodwill of the firm is valued at 1,80,000. Aparna and Sonia decided to share future profits in the ratio of 3: 2. Pass necessary Journal entries.
The solution of Question 15 Chapter 6 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Aparna's Capital A/c
Dr
 
18,000

Sonia's Capital A/c
Dr
 
42,000

To Manisha's Capital A/c
 
 
 
60,000

(Bein

Question 16

Q.No.16 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 16 Chapter 6 of +2-A
16. 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's retirement, the goodwill of the firm was valued at 90,000. Pass necessary Journal entry for the treatment of goodwill on B's retirement.
The solution of Question 16 Chapter 6 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

A's Capital A/c
Dr
 
15,000

C's Capital A/c
Dr
 
15,000

To B's Capital A/c
 
 
 
30

Question 17

Q.No.17 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 17 Chapter 6 of +2-A
Hanny, Pammy, and Sunny are partners sharing profits in the ratio of 3: 2: 1. Goodwill is appearing in the books at a value of 60,000. Pammy retires and at the time of Pammy’s retirement, goodwill is valued at 84,000. Hanny and Sunny decided to share future profits in the ratio of 2: 1. Record the necessary journal entries.
The solution of Question 17 Chapter 6 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Hanny's Capital A/c
Dr
 
30,000

Pammy's Capi

Question 18

Q.No.18 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 18 Chapter 6 of +2-A
18. X, Y and Z are partners sharing profits in the ratio of 3 : 2 : 1. Goodwill is appearing in the books at a value of 60,000. Y retires and at the time of Y's retirement, goodwill is valued at 84,000. X and Z decided to share future profits in the ratio of 2 : 1. Pass the necessary Journal entries through Goodwill Account
The solution of Question 18 Chapter 6 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

X’s Capital A/c
Dr
 
30,000

Y’s Capital A/c

Question 19

Q.No.19 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 19 Chapter 6 of +2-A
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 profit on revaluation stands at 1,39,200. A and C agreed to pay him 1,50,000 in full settlement of his claim. Record necessary journal entry for adjustment of goodwill if the new profit-sharing ratio is decided at 5 : 3. 
The solution of Question 19 Chapter 6 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

A’s Ca

Question 20

Q.No.20 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 20 Chapter 6 of +2-A
20. M, N and O are partners in firm sharing profits in the ratio of 3: 2: 1. Goodwill has been valued at 60,000. On N's retirement, M and O agree to share profits equally. Pass the necessary journal entry for treatment of N's share of goodwill.
The solution of Question 20 Chapter 6 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

O’s Capital A/c
Dr
 
20,000

To N’s Capital A/c
 
 
 
20,000

(Being Adjustment of B′s share of goodwill)

T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1 Solutions Chapter No. 6 - Retirement/ Death of a Partner

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

Q.No.1 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

The solution of Question 01 Chapter 6 of +2-A: -

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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