Solutions Retirement of Partner TS Grewal Class 12 [2025-26]
Question 1:
Tushar, Radha, and Garv were partners sharing profits in the ratio of \(\frac{1}{2}\), \(\frac{2}{5}\), and \(\frac{1}{10}\). Find the new ratio of the remaining partners if Garv retires.
Solution
Tushar : Radha : Garv = \(\frac{1}{2}\) : \(\frac{2}{5}\) : \(\frac{1}{10}\) = 5 : 4 : 1
Garv retires
New Ratio of Tushar & Radha = 5 : 4
Question 2:
From the following particulars, calculate new profit sharing ratio of the partners:
(a) Paras, 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 Paras and Hari.
(b) P, Q and R were partners sharing profits in the ratio of 5 : 4 : 1. P retires from the firm.
Solution
(a) Paras : Mohan : Hari = 5 : 5 : 4
Mohan retires and his share is divided equally between Paras and Hari
Paras’ gain = \(\frac{5}{14} \times \frac{1}{2}\) = \(\frac{5}{28}\)
Hari’ gain = \(\frac{5}{14} \times \frac{1}{2} = \frac{5}{28}\)
Paras’s new share = \(\frac{5}{14} + \frac{5}{28} = \frac{15}{28}\)
Hari’s new share = \(\frac{4}{14} + \frac{5}{28} = \frac{13}{28}\)
New profit-sharing ratio
= 15 : 13
(b) P : Q : R = 5 : 4 : 1
Pretires
New profit-sharing ratio = 4 : 1
Question 3:
R, S and M are partners sharing profits in the ratio of \(\frac{2}{5}\), \(\frac{2}{5}\), and \(\frac{1}{5}\). 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.
Solution
R : S : M = \(\frac{2}{5} : \frac{2}{5} :\frac{1}{5}\) = 2 : 2 : 1
M retires and his share is taken by R and S in the ratio of 1 : 2.
R’s gain = \(\frac{1}{5} \times \frac{1}{3} = \frac{1}{15}\)
S’s gain = \(\frac{1}{5} \times \frac{2}{3} = \frac{2}{15}\)
R’s new share = \(\frac{2}{5} + \frac{1}{15} = \frac{7}{15}\)
S’s new share = \(\frac{2}{5} + \frac{2}{15} = \frac{8}{15}\)
New profit-sharing ratio
= 7 : 8
Question 4:
X, Y and Z are partners sharing profits in the ratio of \(\frac{1}{2}\), \(\frac{3}{10}\), and \(\frac{1}{5}\). Calculate the gaining ratio of remaining partners when Y retires from the firm.
Solution
X : Y : Z = \(\frac{1}{2} : \frac{3}{10} : \frac{1}{5}\) = 5 : 3 : 2
Y retires
New profit-sharing ratio = 5 : 2
Calculation of gaining ratio
Gaining ratio = New ratio – Old ratio
X = \(\frac{5}{7} – \frac{5}{10} = \frac{50 – 35}{70} \frac{15}{70}\)
Z = \(\frac{2}{7} – \frac{2}{10} = \frac{20 – 14}{70} \frac{6}{70}\)
Gaining ratio
= 15 : 6 or 5 : 2
Question 5:
Sarthak, Vansh and Mansi were partners sharing profits in the ratio of 4 : 3 : 2. Sarthak retires, Vansh and Mansi will share future profits in the ratio of 2 : 1. Determine the gaining ratio.
Solution
Sarthak : Vansh : Mansi = 4 : 3 : 2 (Old share)
Sarthak retires.
Vansh : Mansi = 2 : 1 (New share)
Calculation of gaining ratio
Gaining ratio = New ratio – Old ratio
Vansh = \(\frac{2}{3} – \frac{3}{9} = \frac{6 – 3}{9} \frac{3}{9}\)
Mansi = \(\frac{1}{3} – \frac{2}{9} = \frac{3 – 2}{9} \frac{1}{9}\)
Gaining ratio
= 3 : 1
Question 6:
(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 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 takes 4/9 of C’s share and balance 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 reties
W : X : Z = 1 : 1 : 1
Calculation of gaining ratio
Gaining ratio = New ratio – Old ratio
W = \(\frac{1}{3} – \frac{2}{6} = \frac{0}{6}\)
X = \(\frac{1}{3} – \frac{1}{6} = \frac{1}{6}\)
Z = \(\frac{1}{3} – \frac{1}{6} = \frac{1}{6}\)
Gaining ratio
= 0 : 1 : 1
(b) A : B : C = 4 : 3 : 2
C retires from the business. A takes 4/9 of C’s share and balance is taken by B.
A takes C’s share = \(\frac{2}{9} \times \frac{4}{9} = \frac{8}{81}\)
B takes C’s share = \(\frac{2}{9} – \frac{8}{81} = \frac{10}{81}\)
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
Calculation of gaining ratio
Gaining ratio = New ratio – Old ratio
A = \(\frac{44}{81} – \frac{4}{9} = \frac{8}{81}\)
B = \(\frac{37}{81} – \frac{3}{9} = \frac{10}{81}\)
Gaining ratio
= 8 : 10 = 4 : 5
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 taken by Lakshya and Manoj in the ratio of 3 : 2. Calculate new profit sharing ratio and gaining ratio of the remaining partners.
Solution
Kumar : Lakshya : Manoj : Naresh = 3 : 2 : 1 : 4
Kumar retires and his share is taken by Lakshya and Manoj in the ratio of 3 : 2.
Lakshya gain = \(\frac{3}{10} \times \frac{3}{5} = \frac{9}{50}\)
Manoj gain = \(\frac{3}{10} \times \frac{2}{5} = \frac{6}{50}\)
Lakshya’s new share = \(\frac{2}{10} + \frac{9}{50} = \frac{19}{50}\)
Manoj’s new share = \(\frac{1}{10} + \frac{6}{50} = \frac{11}{50}\)
Naresh’s new share = \(\frac{4}{10}\)
New profit-sharing ratio
= \(\frac{19}{50} : \frac{11}{50} : \frac{4}{10}\) = 19 : 11 : 20
Calculation of gaining ratio
Gaining ratio = New ratio – Old ratio
Lakshya = \(\frac{19}{50} – \frac{2}{10} = \frac{9}{50}\)
Manoj = \(\frac{11}{50} – \frac{1}{10} = \frac{6}{50}\)
Naresh = \(\frac{20}{50} – \frac{4}{10} = \frac{0}{50}\)
Gaining ratio
= 9 : 6 : 0 = 3 : 2
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
A : B : C = 8 : 4 : 3
B retires and his share is taken up equally by A and C.
A gain = \(\frac{4}{15} \times \frac{1}{2} = \frac{4}{30}\)
C gain = \(\frac{3}{15} \times \frac{1}{2} = \frac{3}{30}\)
A’s new share = \(\frac{8}{15} + \frac{4}{30} = \frac{20}{30}\)
C’s new share = \(\frac{3}{15} + \frac{4}{30} = \frac{10}{30}\)
New profit-sharing ratio
= \(\frac{19}{50} : \frac{11}{50} : \frac{4}{10}\) = 19 : 11 : 20
Calculation of gaining ratio
Gaining ratio = New ratio – Old ratio
Lakshya = \(\frac{19}{50} – \frac{2}{10} = \frac{9}{50}\)
Manoj = \(\frac{11}{50} – \frac{1}{10} = \frac{6}{50}\)
Naresh = \(\frac{20}{50} – \frac{4}{10} = \frac{0}{50}\)
Gaining ratio
= 9 : 6 : 0 = 3 : 2
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 new profit sharing ratio of A and B.
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 favor of Naveen and the remaining share in favour of Omprakash. Calculate the new profit sharing ratio and gaining ratio of the remaining partners.
Solution
Question 11:
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.
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 ₹ 72,000. Calculate Shahid’s share of goodwill and pass the Journal entry for Goodwill. Sunit and David decided to share future profits and losses in the ratio of 5 : 3.
Question 13:
P, Q, R and S were partners in a firm sharing profits in the ratio of 5 : 3 : 1 : 1. On 1st January, 2023, S retired from the firm. On S’s retirement, goodwill of the firm was valued at ₹ 4,20,000. 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.
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 ₹ 1,80,000. Aparna and Sonia decided to share future profits in the ratio of 3 : 2. Pass necessary Journal entries.
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’s retirement, the goodwill of the firm was valued at ₹ 90,000. Pass necessary Journal entry for the retirement of goodwill on B’s retirement.
Question 16:
Aman, Bimal and Deepak are partners sharing profits in the ratio of 2 : 3 : 5. The goodwill of the firm has been valued at ₹ 37,500. Aman retired, Bimal and Deepak decided to share profits equally in future. Calculate gain/sacrifice of Bimal and Deepak on Aman’s retirement and also pass necessary Journal entry for the treatment of goodwill.
Question 17:
M, N and O are partners in a 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.
Question 18:
A, B, C and D are partners sharing profits in the ratio of 3 : 3 : 2 : 2 respectively. 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 ₹ 6,00,000. Goodwill existed in the books at ₹ 4,50,000. Profits for the first year after D’s retirement was ₹ 12,00,000. Give the necessary Journal entries to record Goodwill and to distribute the profits. Show your calculations.
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 (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.
Question 20:
Shivam, Kapil and Deepak are partners sharing profits in the ratio of 3 : 1 : 2. On 31st March, 2022, Kapil retired and his capital account after adjustments of reserve and profit on revaluation was ₹ 3,50,000. Shivam and Deepak paid him ₹ 4,20,000 in settlement of his claim. To settle his account, a computer of ₹ 4,20,000 was given to Kapil. Pass the necessary Journal entries in the books of the firm.
Question 21:
M, N and O are partners in a 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.
Question 22:
A, B, C and D are partners in a firm sharing profits, in the ratio of 2 : 1 : 2 : 1. On the retirement of C, Goodwill was valued ₹ 1,80,000. A, B and d decide to share future profits equally. Pass the necessary Journal entry for the treatment of goodwill.
Question 23:
A, B and C were partners in a firm sharing profits in the ratio of 6 : 5 : 4. Their capitals were A – ₹ 1,00,000; B – ₹ 80,000 and C – ₹ 60,000 respectively. On 1st April, 2009, A retired from the firm and the new profit sharing ratio between B and C was decided as 1 : 4. On A’s retirement, the goodwill of the firm was valued at ₹ 1,80,000. Showing your calculations clearly, pass the necessary Journal entry for the treatment of goodwill on A’s retirement.
Question 24:
Sangeeta, Saroj and Shanti are partners sharing profits and losses in the ratio of 5 : 3 : 2. Shanit retired and on the date of her retirement, following adjustements were agreed:
a) The value of furniture is to be increased by ₹ 12,000
b) The value of stock to be decreased by ₹ 10,000.
c) Machinery of the books value of ₹ 50,000 is to be reduced by 10%.
d) A Provision for doubtful debts @ 5% is to be created on debtors of book value of ₹ 40,000.
e) Unrecorded investment worth ₹ 10,000.
f) A creditor of ₹ 1,000 is not likely to be claimed, hence, is to be written back.
Pass necessary Journal entries.
Question 25:
Leena, Madan and Naresh were partners, sharing profits and losses in the ratio of 2 : 2 : 1. B retired on 31st March, 2023. on the date of his retirement, some of the assets and liabilities appeared in the books as follows:
Creditors ₹ 70,000; Building ₹ 1,00,000; Plant and Machinery ₹ 40,000; Stock of Raw Materials ₹ 20,000; Stock of Finished Goods ₹ 30,000 and Debtors ₹ 20,000.
Following was agreed among the partners on B’s retirement:
a) Building to be appreciated by 20%
b) Plant and Machinery to be reduced by 10%.
c) A Provision of 5% on Debtors to be created for Doubtful Debts.
d) Stock of Raw Materials to be valued at ₹ 18,000 and Finished Goods at ₹ 35,000.
e) An old Computer previously written off was sold for ₹ 2,000 as scrap.
f) Firm had to pay ₹ 5,000 to an injured employee.
Pass necessary Journal entries to record the above adjustments and prepare the Revaluation Account.
