[ISC] Q. 16 Retirement of Partner TS Grewal Solution Class 12 (2026-27)

Solution to Question number 16 of the Retirement of Partner Chapter of TS Grewal Book ISC Board 2026-27 session?

Sid, Harry and Jiten are partners sharing profits and losses in the ratio of 4 : 3 : 1. Harry retires, selling his share of profit to Sid and Jiten for ₹ 1,20,000. ₹ 70,000 being paid by Sid and ₹ 50,000 by Jiten. Profit for the year after the retirement of Harry is ₹ 64,000. Pass necessary Journal entries for the above transactions and calculate new profit sharing ratio.

Solution:-

Working Notes:-