Solutions Death of Partner TS Grewal Class 12 [2025-26]
Death of a Partner (New Profit-Sharing Ratio and Gaining Ratio)
Question Nos 1 to 5
Question 1:
Deepak, Ram and Saurav were partners sharing profits in the ratio of 1/2, 2/5, and 1/10. Find the new profit-sharing ratio of the remaining partners if Saurav dies.
Solution
Deepak : Ram : Saurav = \(\frac{1}{2} : \frac{2}{5} : \frac{1}{10}\) = 5 : 4 : 1
Saurav dies
New Profit-sharing ratio = 5 : 4
Question 2:
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 died and his share was taken equally by Shiv and Hari.
(b) P, Q and R were partners sharing profits in the ratio of 5 : 4 : 1. P died.
Solution
(a)
Shiv : Mohan : Hari = 5 : 5 : 4
Mohan died and his share was taken equally by Shiv and Hari.
Shiv gain = \(\frac{5}{14} \times \frac{1}{2} = \frac{5}{28}\)
Shiv’s new share = \(\frac{5}{14} + \frac{5}{28} = \frac{15}{28}\)
Hari gain = \(\frac{5}{14} \times \frac{1}{2} = \frac{5}{28}\)
Hari’s new share = \(\frac{4}{14} + \frac{5}{28} = \frac{13}{28}\)
Newe Profit sharing ratio
= 15 : 13
(b)
P : Q : R = 5 : 4 : 1
P died
In the absense of any other information
New Profit-sharing ration = 4 : 1
Question 3:
Keshav, Nirmal, and Pankaj are partners sharing profits in the ratio of 5 : 3 : 2. Pankaj died and his share is taken by Keshav. Calculate the new profit-sharing ratio of Keshav and Nirmal.
Solution
Keshav : Nirmal : Pankaj = 5 : 3 : 2
Pankaj died and his share is taken by Keshav.
Panka ‘s new share = \(\frac{5}{10} + \frac{2}{10} = \frac{7}{10}\)
Nirmal’s new share = \(\frac{3}{10} + 0 = \frac{3}{10}\)
New Profit-sharing ratio
= 7 : 3
Question 4:
A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. A died, B and C will share profits in the ratio of 2 : 1. Determine the gaining ratio.
Solution
A : B : C = 4 : 3 : 2
A died
B and C will share profits in the ratio of 2 : 1.
B gain = \(\frac{2}{3} – \frac{3}{9} = \frac{3}{9}\)
C gain = \(\frac{1}{3} – \frac{2}{9} = \frac{1}{9}\)
Gaining ratio of B & C
= 3 : 1
Question 5:
(a) W, X, Y and Z are partners sharing profits and losses in the ratio of \(\frac{1}{3}, \frac{1}{6}, \frac{1}{3}\) and \(\frac{1}{6}\) respectively. Y died 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 died, A takes 4/9 of C’s share and balances is taken by B. Calculate the new profit sharing ratio and gaining ratio.
Solution
(a)
W : X : Y : Z = \(\frac{1}{3} : \frac{1}{6} : \frac{1}{3} : \frac{1}{6}\) = 2 : 1 : 2 : 1
Y died and W, X and Z decide to share the profits and losses equally in future.
W gain = \(\frac{1}{3} – \frac{2}{6} = \frac{0}{6}\)
X gain = \(\frac{1}{3} – \frac{1}{6} = \frac{1}{6}\)
Z gain = \(\frac{1}{3} – \frac{1}{6} = \frac{1}{6}\)
Gaining ratio
= 1 : 1
(b)
A : B : C = 4 : 3 : 2
C died, A takes 4/9 of C’s share and balances is taken by B.
A gain = \(\frac{2}{9} \times \frac{4}{9} = \frac{8}{81}\)
B gain = \(\frac{2}{9} – \frac{8}{81} = \frac{10}{81}\)
A’s new share = \(\frac{4}{9} + \frac{8}{81} = \frac{44}{81}\)
B’s new share = \(\frac{3}{9} + \frac{10}{81} = \frac{37}{81}\)
New Profit-sharing ratio
= 44 : 37
Solutions Death of Partner TS Grewal Class 12 [2025-26]
Deceased Partner’s Share of Goodwill
Question Nos 6 to 8
Question 6:
X, Y and Z were partners in a firm sharing profit in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. Y died on 30th June, 2023. On Y’s death, goodwill of the firm was valued at ₹ 60,000. Y’s share in the profit of the firm till the date of his death was to be calculated on the basis of previous year’s profit which was ₹ 1,50,000. Pass necessary Journal entries for goodwill and Y’s share at the time of his death.
Solution
X’s Capital A/c Dr. 15,000
Z’s Capital A/c Dr. 5,000
\(\quad\) To Y’s Capital A/c \(\quad\) 20,000
(Being goodwill adjusted)
Profit & Loss Suspense A/c Dr. 12,500
\(\quad\) To Y’s Capital A/c \(\quad \quad \quad \quad \quad\) 12,500
Working Notes:
A : B : C = 3 : 2 : 1
B died
New Profit-sharing ratio = 3 : 1
Goodwill of the firm = 60,000
Y’s share of goodwill = 60,000 \(\times \frac{2}{6}\) = 20,000
Profit of the year = 1,50,000
Y’s share in Profit = 1,50,000 \(\times \frac{3}{12} \times \frac{2}{6}\) = 12,500
Question 7:
P, R and S are in partnership sharing profits 4/8, 3/8 and 1/8 respectively. It is provided in the partnership deed that on the death of any partner his share of goodwill is to be valued at one half of the net profit credited to his account during the last four completed years.
R died on 1st April, 2023. The firm’s profits for the last four years ended 31st March, were as:
2020 – ₹ 1,20,000; 2021 – ₹ 80,000; 2022 – ₹ 40,000; 2023 – ₹ 80,000.
(a) Determine the amount that should be credited to R in respect of his share of Goodwill.
(b) Pass Journal entry for adjustment of Goodwill.
Solution
P’s Capital A/c Dr. 48,000
S’s Capital A/c Dr. 12,000
\(\quad\) To R’s Capital A/c 60,000
Working Notes
Profit of the last 4 years = 1,20,000 + 80,000 + 40,000 + 80,000 = 3,20,000
R’s share in goodwill = 3,20000 \(\frac{3}{8} \times \frac{1}{2}\) = 60,000
Question 8:
P, Q and R were partners in a firm sharing profits in the ratio of 3 : 2 : 1. P dies and the new profit sharing ratio of Q and R was agreed to be equal. On P’s death, goodwill of the firm was valued at ₹ 60,000.
Pass the necessary entries for the treatment of goodwill under the following conditions:
(a) When Goodwill does not exist in the books of account; and
(b) When Goodwill exists in the books of account at ₹ 30,000.
Solution
Case (a)
Q’s Capital A/c Dr. 10,000
R’s Capital A/c Dr. 20,000
\(\quad\) To P’s Capital A/c 30,000
(P is compensated his share in Goodwill by Q R in their gaining ratio 1 : 2)
Case (b)
P’s Capital A/c Dr. 15,000
Q’s Capital A/c Dr. 10,000
R’s Capital A/c Dr. 5,000
\(\quad\) To Goodwill A/c 30,000
(Goodwill apears in the book written off)
Q’s Capital A/c Dr. 10,000
R’s Capital A/c Dr. 20,000
\(\quad\) To P’s Capital A/c 30,000
(P is compensated his share in Goodwill by Q R in their gaining ratio 1 : 2)
Solutions Death of Partner TS Grewal Class 12 [2025-26]
Calculation of Profit Share of a Deceased Partner
Question Nos 9 to 23
Question 9:
Dinkar, Navita and Vani were partners sharing profits and losses in the ratio of 3 : 2 : 1. Navita died on 30th June, 2017. Her share of profit for the intervening period was based on the sales during that period, which were ₹ 6,00,000. The rate of profit during the past four years had been 10% on sales. The firm closes its books on 31st March every year. Calculate Navita’s share of profit.
Solution
Dinkar : Navita : Vani = 3 : 2 : 1
Navita died
Sales of the firm upto 30th June 2017 = 6,00,000
The rate of profit on sales = 10 %
Profit from 1st April to 30th June 2017 = 6,00,000 \(\times \frac{10}{100}\) = 60,000
Navita’s share of Profit = 60,000 \(\times \frac{2}{6}\) = 20,000
Question 10:
Juhi, Riya and Pari are partners sharing profits and losses in the ratio of 3 : 2 : 1. Riya died on 30th June, 2024, For the year ended 31st March, 2025, proportionate profits of 2024 is to be taken into consideration. During the year ended 31st March, 2024, bad debts of ₹ 2,000 had to be adjusted. Profit for the year ended 31st March, 2024 was ₹ 14,000 before adjustment of bad debts. Calculate Riya’s share of profit till the date of his death.
Solution
Profit for the year 31st March after bad debts = 14,000 – 2000 = 12,000
Profit upto 30th June = 12000 \(\times \frac{3}{12}\) = 3,000
Riys’s share in profit upto 30th June = 3000 \(\times \frac{2}{6} = 1,000\)
Question 11:
Anil, Sunil and Hari were partners sharing profits equally. Suni died on 31st December 2022. In terms of the partnership deed, accounts were prepared for the period ended 31st December 2022 and net profit was determined at ₹ 6,00,000. Pass the Journal entry for the profit share of the partners.
Solution
Profit & Loss Appropriation A/c Dr. 6,00,000
\(\quad\) To Anil’s Capital A/c \(\quad\quad\quad\) 2,00,000
\(\quad\) To Sunit’s Capital A/c\(\quad\quad\quad\) 2,00,000
\(\quad\) To Hari’s Capital A/c\(\quad\quad\quad\) 2,00,000
(Profit for the year credited to all partner’s old profit-sharing ratio, i.e., 1 : 1 : 1)
Question 12:
A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 25th February 2019, B died, B’s share of profit till the date of his death was calculated at ₹ 5,000. Pass the necessary Journal entry for the same in the books of the firm.
Solution
Profit and Loss Suspense A/c Dr. 5,000
\(\quad\) To B’s Capital A/c \(\quad \quad\quad\quad\) 5,000
Question 13:
Ram, Manu and Hari were partners in a firm. Hari died on 30th June, 2023. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed financial years of profits before death. Profits for the years ended 31st March, 2021, 2022 and 2023 were ₹ 1,10,000; ₹ 1,20,000 and ₹ 1,30,000 respectively. Calculate Hari’s share of profit till the date of his death and pass necessary Journal entry for the same.
Solution
Average Profit = \(\frac{1,10,000 + 1,20,000 + 1,30,000}{3}\) = 120,000
Hari’s share of profit = 1,20,000 \(\times \frac{3}{12} \frac{1}{3}\) = 10,000
Question 14:
X, Y and Z were partners sharing profits and losses in the ratio of 3 : 2 : 1. Y died on 30th June, 2022. Profit from 1st April, 2022 to 30th June, 2022 was ₹ 3,60,000. X and Z decided to share future profits in the ratio of 3 : 2 with effect from 1st July, 2022.
Pass the necessary Journal entries to record Y’s share of profit up to the date of death.
Solution
X’s Capital A/c Dr. 36,000
Z’s Capital A/c Dr. 84,000
\(\quad\) To Y’s Capital A/c 1,20,000
(Being Y’s share in profit adjusted)
Working Notes
X : Y : Z = 3 : 2 : 1
Y died
X and Z decided to share future profits in the ratio of 3 : 2
X’s gain = \(\frac{3}{5} – \frac{3}{6} = \frac{3}{30}\)
Z’s gain = \(\frac{2}{5} – \frac{1}{6} = \frac{7}{30}\)
Gaining ratio = 3 : 7
Y’s share in profit = 3,60,000 \(\frac{2}{6}\) = 1,20,000
Question 15:
Radha, Tina and Reeta were partners sharing profits equally. Reeta died on 31st July 2022. Radha and Tina decided to continue the business. Share of profit or loss of the deceased partner from the beginning of the year up to the date of death was to be determined on the basis of last year’s profit, which was ₹ 4,50,000. Pass necessary Journal entry to record Reeta’s share of profit/loss up to the date of death.
Solution
Profit & Loss Suspense A/c Dr.
\(\quad\) To Reeta’s Capital A/c
(Reeta’s share in profit credited)
Question 16:
Manoj, Rakesh and Harsh were partners sharing profits in the ratio of 2 : 2 : 1. Manoj died on 30th June, 2022. Rakesh and Harsh decided to continue the business. Share of profit or loss of the deceased partner from the beginning of the year up to the date of death was to be determined on the basis of last year’s profit. Last year’s loss was ₹ 2,00,000.
Pass necessary Journal entry to record Manoj’s share of profit/loss up to the date of death.
Solution
Question 17:
A, B and C were partners sharing profits in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. B died on 30th June, 2022. On his death, Goodwill of the firm valued at ₹ 6,00,000. B’s share in profit or loss till the date was to be calculated on the basis of previous year’s profit which was ₹ 15,00,000 (Loss). Pass necessary Journal entries for goodwill and his share of loss.
Question 18:
X, Y and Z were partners in a firm. Z died on 31st May, 2022. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death. Profits for the years ended 31st March, 2020, 2021 and 2022 were ₹ 18,000; ₹ 19,000 and ₹ 17,000 respectively.
Calculate Z’s share of profit till his death and pass necessary Journal entry for the same when:
(a) Profit sharing ratio of remaining partners does not change, and
(b) Profit sharing ratio of remaining partners changes and new ratio being 3 : 2.
Question 19:
A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. C died on 30th June, 2023. Profit and sales for the year ended 31st March, 2023 were ₹ 1,00,000 and ₹ 10,00,000 respectively. Sales during April to June, 2023 were ₹ 1,50,000. You are required to calculate share of profit of C till the date of his death.
Question 20:
Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2 : 2 : 1. On 1st July, 2022 Shreya died. The books of accounts are closed on 31st March every yer. Sales for the year 2021-22 ₹ 5,00,000 and that from 1st April to 30th June, 2022 were ₹ 1,40,000. Rate of profit during the past three years had been 10% on sales. Since Shreya’s legal representative was her only son, who is differently abled, it was decided that the profit for the purpose of settling Shreya’s account is to be calculated as 20% on sales.
Calculate Shreya’s share of profits till the date of her death and pass necessary Journal entry for the same.
Question 21:
Raman, Param and Karan were partners sharing profits and losses in the ratio of 3 : 2 : 1. Param died on 31st December, 2022. Accounts of the firm are closed on 31st March every year. Sales for the year ended 31st March, 2022 was ₹ 12,00,000 and sales for the nine months ended 31st December, 2022 was ₹ 6,00,000. Loss for the year ended 31st March, 2022 was ₹ 90,000. Calculate deceased partner’s share of profit/loss from the beginning of the accounting year up to 31st December, 2022.
Question 22:
Akhil, Bikram and Charu were partners sharing profits and losses in the ratio of 3 : 2 : 1. Bikram died on 30th september, 2022. Loss from the beginning of the accounting year till the date of death was estimated at ₹ 3,60,000. Akhil and Charu decided to share future profits in the ratio of 3 : 2 w.e.f. 1st October, 2022. Pass the necessary Journal entry to record Bhuwan’s share of profit/loss up to the date of death.
Question 23:
Abha, Beena and Chanda were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Abha died on 1st July, 2023. The partnership Deed provided that Abha’s executors are entitled to her share of profit till the date of death calculated on the basis of sales for the immediate previous year. Sales for the year ended 31st March, 2023 was ₹ 12,00,000 and the profit for the same year was ₹ 3,00,000. Sales shows a growth trend of 20% and percentage of profit earning remains the same. Journalise the transaction along with working notes.
