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

Solution to Question number 17 of the Retirement of Partner Chapter of TS Grewal Book ISC Board 2026-27 session?

X, Y and Z are partners sharing profits and losses in the ratio of 14: 5: 6. Y retires and surrenders 5/25th of his share in favour of X and the remaining in favour of Z.
Goodwill of the firm is valued at 2 years’ purchase of Super Profits based on average of last 3 years profits.

The profits for the last 3 years are: ₹ 50,000, ₹ 55,000, ₹ 60,000.Normal profits for similar firm
are 30,000. Goodwill exists in the books of the firm at 75,000.

You are required to give necessary Journal entries to adjust Goodwill.

Solution:-