Question 11:
P, Q and R are partners sharing profits in the ratio of
7:5:3. P retires and it is decided that profitsharing ratio between Q
and R will be same as existing between P and Q.
Calculate New profitsharing 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
Treatment of
Goodwill
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=4/95/8=3245/72= 13/72
David= 2/93/8=1627/72=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, 2024, S retired from the
firm. On S's retirement, goodwill of the firm was valued at ` 4,20,000. New profitsharing 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 (`) 

2024 






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 profitsharing 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 =43/6=1/6
B‘s share= 1/3 1/6 =21/6=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 20242025
Click below for more Questions
Class 12 / Volume – I