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12th | Retirement Of A Partner | Question No. 11 To 15 | Ts Grewal Solution 2023-2024

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.

 

Answer:


 

Calculation of Gaining Ratio

P :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=7/12−5/15=35−20/60=15/60

R's Gain=5/12−3/15=25−12/60=13/60

Q:R = 15:13

 

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.


Sunil and David decided to share future profits and losses in the ratio of 5:3.

 

Answer:


Journal

Date

Particulars

L.F.

Debit

 (`)

Credit

 (`)

Shahid’s capital a/c

Dr.

24,000

 

   To Sunil’s capital a/c

13,000

 

   To David’s capital a/c

11,000

 

(Being Goodwill adjusted)

 

 

 

 

 

 

 

 

 

 

 

Working notes;

WN1-

Calculation of gaining and sacrificing ratio

 

Sunil

Shahid

David

Old ratio

4       :

3         :

2

New ratio

5

  :

3

Sunil=4/9-5/8=32-45/72= -13/72

David= 2/9-3/8=16-27/72=-11/72

Gaining ratio of Sunil and David=13:11

 

WN2-

Firms goodwill =72,000

Share of retiring partner Shahid is 3/9

Share of shahid share =72,000×3/9=24,000

 

WN3-

Sunil and David will compensate 24,000 in their gaining ratio 13:11

Sunil will compensate=24,000×13/24=13,000

David will compensate=24,000×11/24=11,000

 

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.

 

Answer:


Journal

Date

Particulars

L.F.

Debit

 (`)

Credit

 (`)

2023
Jan.1


R’s  Capital A/c


Dr.

 


84,000

 

 

  To P’s  Capital A/c

 

 

 

42,000

 

  To S’s  Capital A/c

 

 

 

42,000

 

(Being Goodwill adjusted)

 

 

 

 

 

 

 

 

 

 


Working Notes:

Gaining Ratio = New Ratio – Old Ratio 

P=4/10−5/10=−1/10 sacrifice

Q=3/10−3/10=0

R=3/10−1/10=2/10

P's share=4,20,000×1/10=42,000

R's share=4,20,000×2/10=84,000

S's share=4,20,000×1/10=42,000

 

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.

 

Answer:


Journal 

 

Date

Particulars

L.F.

 (`)

 (`)

 

Aparna’s Capitals A/c

Dr.

 

18,000

 

 

Sonia’s Capital A/c

Dr.

 

42,000

 

 

   To Manisha’s Capital A/c

 

 

 

60,000

 

(Being Manisha’s share of goodwill adjusted to Aparna’s and Sonia’s Capital Account in their gaining ratio)

 

 

 


Working Notes:

WN1: Calculation of Manisha’s Share in Goodwill

Manisha's share=Firm's Goodwill×Manisha's Profit ShareManisha's share=1,80,000×13=60,000


WN2: Calculation of Gaining Ratio
Gaining Ratio = New Ratio − Old Ratio

Aparna's gain=3/5−3/6=3/30

Sonia's gain=2/5−1/6=7/30

Gaining Ratio=3:7
Aparna's share=60,000×3/10=18,000

Sonia's share=60,000×7/10=42,000

 

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 treatment of goodwill on B's retirement.

 

Answer:


Journal

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/s

 

 

30,000

(Being Adjustment B’s share of goodwill made)

 

 

 

Working Notes:

WN 1 Calculation of Gaining Ratio

Old Ratio (A, B and C) = 3 : 2 : 1

B retires from the firm.

New Ratio (A and C) = 2 : 1

Gaining Ratio=New Ratio − Old Ratio

A‘s share=2/3 -3/6 =4-3/6=1/6

B‘s share= 1/3 -1/6 =2-1/6=1/6

Gaining Ratio = 1 : 1

WN 2 Adjustment of Goodwill

Goodwill of the firm = ` 90,000

B’s share of goodwill =90,000×2/3=30,000

This share of goodwill is to be debited to remaining Partners’ Capital Accounts in their gaining ratio (i.e. 1 : 1).

A’s and C’s capital will be debited =30,000×1/2=15000

 

 

Ts Grewal Solution 2023-2024

Click below for more Questions

Class 12 / Volume – I

Chapter 5 – Retirement of a Partner

 

Question No. 1 To 5
Question No. 6 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 35
Question No. 36 To 40
Question No. 41 To 45
Question No. 46 To 50
Question No. 51 To 55

Question No. 56 To 60