[CBSE] Q. 32 Death of Partner Solution TS Grewal Class 12 (2025-26)

Solution of Question number 32 of the Death of Partner Chapter of TS Grewal Book 2025-26 Edition CBSE Board.

X, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2025, their Balance Sheet was as follows:

Liabilities	₹	Assets	₹
Trade Creditors	2,00,000	Cash at Bank	1,80,000
General Reserve	60,000	Stock	1,40,000
Capital A/cs: X Y Z	7,00,000 7,00,000 60,000	Sundry Debtors	80,000
		Building	3,00,000
		Advance to Y	7,00,000
		Profit & Loss A/c	3,20,000
	17,20,000		17,20,000

Y died on 30th June, 2025. Partnership Deed provided for following on the death of a partner.

(i) Goodwill of the business was to be calculated on the basis of 2 times the average profit of the past 5 years. Profits for the years ended 31st March, 2025, 31st March, 2024, 31st March, 2023, 31st March, 2022 and 31st March, 2021 were ₹ 3,20,000 (Loss); ₹ 1,00,000; ₹ 1,60,000; ₹ 2,20,000 and ₹ 4,40,000 respectively.

(ii) Y’s share of profit or loss from 1st April, 2025 till his death was to be calculated on the basis of the profit or loss for the year ended 31st March, 2025.

You are required to calculate the following:

(a) Goodwill of the firm and Y’s share of goodwill at the time of his death.

(b) Y’s share in the profit or loss of the firm till the date of his death.

(c) Prepare Y’s Capital Account at the time of his death to be presented to his executors.

[Ans.: Amount due from Y’s Excecutors – ₹ 40,000; Y’s share of Goodwill – ₹ 96,000.]

Solution:-

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