# 12th | Ts grewal 2022-2023 Question 11 to 15 | Retirement of A Partner

#### Question 11:

Om, Ram and Shanti are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Ram decides to retire from the firm. Calculate new profit-sharing ratio of Om and Shanti in the following circumstances:
(a) If Ram gives his share to Om and Shanti in the original ratio of Om and Shanti.
(b) If Ram gives his share to Om and Shanti in equal proportion.
(c) If Ram gives his share to Om and Shanti in the ratio of 3 : 1.
(d) If Ram gives his share to Om only.

Old Ratio (Om, Ram and Shanti) = 4 : 3 : 2

Ram retires from the firm.

His profit share = 3/9

Case (a) Ram gives his share to Om and Shanti in their original ratio.

Original Share (
Om and Shanti) = 4 : 2

Share of mohan taken by Om =3/9×4/6=12/54

Share of mohan taken by Ram =3/9×2/6=6/54

New Ratio = Old Ratio + Share acquired from Ram

Om‘s new share= 4/9+12/54=24+12/54=36/54

Ram‘s new share= 2/9+6/54=12+6/54=18/54
New Profit Ratio (Om and Shanti) = 36: 18 or 2: 1

Case (b) B gives his share to
Om and Shanti in equal proportion.

Share taken by Om and Shanti =3/9×1/2=3/18 each

New Ratio = Old Ratio + Share acquired from Ram

Om‘s new share= 4/9+3/18 =8+3/18=11/18

Shanti‘s new share= 2/9+3/18 =4+3/18=7/18

New Profit Ratio (Om and Shanti) = 11 : 7

Case (c) B gives his to
Om and Shanti in the ratio 3 : 1.

Share taken by Om=3/9×3/4=9/36

Share taken by Ram=3/9×1/4=3/36

New Ratio = Old Ratio + Share acquired from Ram

Om‘s new share=4/9+9/36 =16+9/36=25/36

Shanti‘s new share=2/9+ 3/36=8+3/36=11/36

New Profit Ratio (Om and Shanti) = 25 : 11

Case (d) B gives his share to Om only.

Om’s New Share = Om’s Old Share + Share of Ram =4/9+3/9=7/9
Shanti’s Share =2/9
New Profit Ratio (Om and Shanti) = 7:2

#### Question 12:

P, Q and R are partners sharing profits in the ratio of 7:5:3. P retires and it is decided that profit-sharing ratio between Q and R will be same as existing between P and Q. Calculate New profit-sharing ratio and Gaining Ratio.

Calculation of Gaining Ratio

P :Q :R=7:5:3(Old ratio)

Q :R=7:5 (New ratio, same as between P & Q)

Gaining Ratio = New Ratio - Old Ratio

Q's Gain=7/12−5/15=35−20/60=15/60

R's Gain=5/12−3/15=25−12/60=13/60

Q :R=15:13

Question 13: Sunil, Shahid and David are partners sharing profits and losses in the ratio of 4:3:2.Shahid retires and the goodwill is valued at `72,000. Calculate Shahid's share of goodwill and pass the Journal entry for Goodwill.

Sunil and David decided to share future profits and losses in the ratio of 5:3.

 Journal Date Particulars L.F. Debit  ( `) Credit  ( `) Shahid’s capital a/c Dr. 24,000 To Sunil’s capital a/c 13,000 To David’s capital a/c 11,000 (Being Goodwill adjusted)

#### Question 14:

P, Q, R and S were partners in a firm sharing profits in the ratio of 5 : 3 : 1 : 1. On 1st January, 2022, 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.

 Journal Date Particulars L.F. Debit  ( `) Credit  ( `) 2022 Jan.1 R’s  Capital A/c Dr. 84,000 To P’s  Capital A/c 42,000 To S’s  Capital A/c 42,000 (Being Goodwill adjusted)

Working Notes:

Gaining Ratio = New Ratio – Old Ratio

P=4/10−5/10=−1/10 sacrifice

Q=3/10−3/10=0

R=3/10−1/10=2/10

P's share=4,20,000×1/10=42,000

R's share=4,20,000×2/10=84,000

S's share=4,20,000×1/10=42,000

#### Question 15:

Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3 : 2 : 1. Manisha retired and goodwill of the firm is valued at  ` 1,80,000. Aparna and Sonia decided to share future profits in the ratio of 3 : 2. Pass necessary Journal entries.

 Journal Date Particulars L.F. ( `) ( `) Aparna’s Capitals A/c Dr. 18,000 Sonia’s Capital A/c Dr. 42,000 To Manisha’s Capital A/c 60,000 (Being Manisha’s share of goodwill adjusted to Aparna’s and Sonia’s Capital Account in their gaining ratio)

Working Notes:

WN1: Calculation of Manisha’s Share in Goodwill

Manisha's share=Firm's Goodwill×Manisha's Profit ShareManisha's share=1,80,000×13=60,000

WN2: Calculation of Gaining Ratio
Gaining Ratio = New Ratio − Old Ratio

Aparna's gain=3/5−3/6=3/30

Sonia's gain=2/5−1/6=7/30

Gaining Ratio=3:7
Aparna's share=60,000×3/10=18,000

Sonia's share=60,000×7/10=42,000

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