[CBSE] Q. 14 solution of Retirement of Partner TS Grewal Class 12 (2026-27)

Solution to Question number 14 of the Retirement of Partner chapter 5 of TS Grewal Book 2026-27 Edition CBSE Board.

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.

[Ans.: Dr. R’s Capital A/c by ₹ 84,000; Cr. P’s Capital A/c and S’s Capital A/c by ₹ 42,000 each.]

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