12th | Retirement of a Partner | Question No. 11 To 15 | Ts Grewal Solution 2025-2026

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

 

Treatment of 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

 

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 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 (₹)
2024 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=−1/10sacrifice

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

 

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

 

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 1Calculation 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 2Adjustment 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