[CBSE] Q. 17 solution of Retirement of Partner TS Grewal Class 12 (2026-27)

Solution to Question number 17 of the Retirement of Partner chapter 5 of TS Grewal Book 2026-27 Edition CBSE Board.

M, N and O are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Goodwill has been valued at ₹ 60,000. On N’s retirement, M and O agree to share profits equally. Pass the necessary Journal entry for treatment of N’s share of goodwill.

[Ans.: Only O is gaining; Dr. O’s Capital A/c and Cr. N’s Capital A/c by ₹ 20,000.]

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