[ISC] Q. 24 Retirement of Partner TS Grewal Solution Class 12 (2026-27)

Solution to Question number 24 of the Retirement of Partner Chapter of TS Grewal Book ISC Board 2026-27 session?

Bimal, Brij and Ajay are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Ajay retires from the firm on 1st April, 2023 and on the date of Ajay’s retirement, following balances existed in the books of the firm:

(i) General Reserve ₹ 60,000; Profit & Loss Account (Dr.) ₹ 30,000.

(ii) Workmen Compensation Reserve ₹ 24,000 against which no liability existed.

(iii) Employees’s Provident Fund ₹ 1,00,000.

Pass necessary Journal entries for the adjustment of these items on Ajay’s retirement.

Solution