In this article, I have provided Q1 to 10 Death of a Partner TS Grewal Solutions 2025-26. You can find the solutions of specifically Q1 to Q10 here. If you have any doubts regarding any of these questions, you can ask in the comments. I will try to resolve your doubts as soon as possible.
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Question 1: (Deepak, Ram, and Sourav)
Deepak, Ram and Saurav were partners sharing profits in the ratio of 1/2, 2/5 and 1/10. Find the new ratio of the remaining partners if Saurav dies.
Answer:
Old Ratio (Deepak, Ram and Saurav) =1/2 :2/5 : 1/10 or 5 : 4 : 1
As we can see, no information is given as to how Deepak and Ram are acquiring Saurav ‘s profit share after his death, so the new profit sharing ratio between Deepak and Ram is calculated just by crossing out the Saurav’s share. That is, the new ratio becomes 5 : 4.
New Profit Ratio (Deepak and Ram) = 5 : 4
Question 2: (Shiv, Mohan, and Hari)
From the following particulars, calculate new profit-sharing ratio of the partners:
(a) Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5 : 5 : 4. Mohan died and his share was taken equally between Shiv and Hari.
(b) P, Q and R were partners sharing profits in the ratio of 5 : 4 : 1. P died from.
Answer:
(a)
Old Ratio (Shiv, Mohan and Hari) = 5 : 5 : 4
Mohan’s Profit Share = 5/14
His share is divided between Shiv and Hari equally i.e. in the ratio of 1: 1
Share of mohan taken by shiv=5/14×1/2=5/28
Share of mohan taken by Hari=5/14×1/2=5/28
New Profit Share = Old Profit Share+Share taken from Mohan
Shiv’s new share=5/14+5/28=10+5/28=15/28
Hari’snew share=4/14+5/28=8+5/28=13/28
New Profit Ratio (Shiv and Hari) = 15: 13
(b)
Old Ratio (P, Q and R) = 5: 4: 1
P’s Profit Share = 5/10
As we can see, no information is given as to how Q and R are acquiring P’s profit share after his death, so the new profit sharing ratio between Q and R is calculated just by crossing out the P’s share. That is, the new ratio becomes 4 : 1
New Profit Ratio (Q and R) = 4: 1
Question 3: (Keshav, Nirmal, and Pankaj)
Keshv, Nirmal, and Pankaj are partners sharing profits in the ratio of 5: 3: 2. Pankaj died and his share is taken by Keshv. Calculate new profit-sharing ratio of KeshvandNirmal.
Answer:
Old Ratio (Keshv, Nirmal, and Pankaj) = 5: 3: 2
Pankaj died from the firm.
His profit share = 2/10
Pankaj’s share is taken by Keshv in entirety
New Ratio = Old Ratio + Share acquired from Pankaj
Keshv ‘s New Share: 5/10+2/10=7/10
Nirmal ‘s New Share: 3/10+0=310
New Profit Ratio (Keshv and Nirmal) = 7: 3
Question 4: (A, B, and C)
A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. A died, B and C will share profits in the ratio of 2 : 1. Determine the gaining ratio.
Answer:
Old Ratio (A, B and C) = 4 : 3 : 2
New Ratio (B and C) = 2 : 1
Gaining Ratio=New Ratio − Old Ratio
B’s gain=2/3-3/9=6-3/9=3/9
C’s gain=1/3-2/9=3-2/9=1/9
Gaining Ratio = 3: 1
Question 5: (W, X, Y, and Z)
(a) W, X, Y and Z are partners sharing profits and losses in the ratio of 1/3, 1/6, 1/3 and 1/6 respectively. Y died and W, X and Z decide to share the profits and losses equally in future.
Calculate gaining ratio.
(b) A, B and C are partners sharing profits and losses in the ratio of 4: 3: 2. C died. A is acquiring 4/9 of C’s share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio.
Answer:
(a)
Old Ratio (W, X, Y and Z) = of 1/3;1/6: 1/3;1/6 or 2 : 1 : 2 : 1
New Ratio (W, X and Z) = 1 : 1 : 1
Gaining Ratio = New Ratio − Old Ratio
W’s Gain=1/3-2/6=2-2/6=0/6
X’s Gain=1/3-1/6=2-1/6=1/6
Z’s Gain=1/3-1/6=2-1/6=1/6
Gaining Ratio = 0: 1: 1
(b)
Old Ratio (A, B and C) = 4: 3: 2
C’s Profit Share =2/9
A acquires 4/9 of C’s Share and remaining share is acquired by B.
Share acquired by A=2/9×4/9=8/81
Share acquired by B=C’s share- Share acquired by A=2/9-8/81=10/81
New Profit Share = Old Profit Share + Share acquired from C
A’s new share=4/9+8/81=36+8/81=44/81
B’s new share=3/9+10/81=27+10/81=37/81
New Profit Ratio A and B = 44: 37
Gaining Ratio = New Ratio − Old Ratio
A’s Gain=44/81-4/9=44-36/81=8/81
B’s Gain=37/81-3/9=37-27/81=10/81
Gaining Ratio = 8: 10 or 4: 5
Question 6: (X, Y, and Z)
X, Y and Z were partners in a firm sharing profit in 3 : 2 : 1. The firm closes its books on 31st March every year. Y died on 30th June, 2024. On Y‘s death goodwill of the firm was valued at ₹ 60,000. Y’s share in the profit of the firm till the date of his death was to be calculated on the basis of previous year’s profit which was ₹ 1,50,000.
Pass necessary Journal entries for goodwill and Y’s share of profit at the time of his death.
Answer:
| Journal | |||||
| Date | Particulars | L.F. | Debit ( ₹) | Credit ( ₹) | |
| 2024 | |||||
| June 30 | X’s Capital A/c | Dr. | 15,000 | ||
| Z’s Capital A/c | Dr. | 5,000 | |||
| To Y’s Capital A/c | 20,000 | ||||
| (Y’s share of goodwill adjusted through X and Y’s Capital Account in gaining ratio, i.e. 3 : 1) | |||||
| June 30 | Profit and Loss Suspense A/c | Dr. | 12,500 | ||
| To Y’s Capital A/c | 12,500 | ||||
| (Y’s profit share till his death debited to P&L Suspense A/c) | |||||
Working Notes:
WN1: Calculation of Y’s Share of Goodwill
Goodwill of the Firm= ₹ 60,000
Y’s Share of Goodwill = 60,000 × 2/6 = ₹ 20,000
20,000 will be debited to X’s & Z’s Capital A/c in gaining ratio of 3 : 1
X will pay = 20,000 × 3/4 = ₹ 15,000
Z will pay = 20,000 × 1/4 = ₹ 5,000
WN2: Calculation of Y’s Share of Profit
Previous Year’s Profit = ₹ 1,50,000
Y’s share of Profit (till death) = Previous Year’s Profit × Y’s Profit Share × 3 months (April 01, 2023 till June 30, 2024)
Y’s share of Profit (till death) = 1,50,000 × 2/6 × 3/12= ₹ 12,500
Question 7: (P, R, and S)
P, R and S are in partnership sharing profits 4/8, 3/8 and 1/8 respectively. It is provided in the Partnership Deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profit credited to his account during the last four completed years.
R died on 1st January, 2025. The firm’s profits for the last four years ended 31st December, were as:
2022− ₹ 1,20,000; 2023 − ₹ 80,000; 2024 − ₹ 40,000; 2025 − ₹ 80,000.
(a) Determine the amount that should be credited to R in respect of his share of Goodwill.
(b) Pass Journal entry without raising Goodwill Account for its adjustment.
Answer:
Calculation of R’s Share of Goodwill
Profit credited to R’s Capital Account in 4 years = Net profit for last four years × R’s Share
=1,20,000+80,000+80,000+4,000×3/8
=3,20,000×3/8=1,20,000
(b)
| Journal | ||||
| Particulars | L.F. | Debit ₹ | Credit ₹ | |
| P’s Capital A/c | Dr. | 48,000 | ||
| S’s Capital A/c | Dr. | 12,000 | ||
| To R’s Capital A/c | 60,000 | |||
| (R’s share of goodwill adjusted) | ||||
Working Notes:
R’s Share of Goodwill = ₹ 60,000
Old Ratio (P, R and S) = 4 : 3 : 1
R died.
Gaining Ratio = 4 : 1
This share of goodwill is to be distributed between P and S in their gaining ratio (i.e. 4 : 1)
p’s Share of Goodwill = 60,000×4/5=48,000
S’s share of Goodwill =60,000 ×1/5=12,000
Question 8: (P, Q, and R)
P, Q and R were partners in a firm sharing profits in the ratio of 3:2:1. P dies and the new profit-sharing ratio of Q and R was agreed to be equal. On P’s death, goodwill of the firm was valued at 60,000:
Pass the necessary entries for the treatment of goodwill under the following conditions:
(a) When Goodwill does not exist in the books of account and
(b) When Goodwill exist in the books of account at Rs. 30,000.
Answer:
(a) When Goodwill does not exist in the books of account
| Date | Particulars | Dr. ( ₹) | Cr. ( ₹) | |
| (i) | Q’s Capital A/c | Dr. | 10,000 | |
| R’s Capital Ale | 20,000 | |||
| ToP’s Capital A/e | 30,000 | |||
| (Being Goodwill is adjusted) | ||||
(b) When Goodwill exist in the books of account at Rs. 30,000.
| Date | Particulars | Dr. ( ₹) | Cr. ( ₹) | |
| (i) | P’s Capital A/c | Dr. | 30,000 | |
| Q’s Capital A/c | 30,000 | |||
| R’s Capital Ale | ||||
| ToGoodwill A/c | 30,000 | |||
| (Being Written-off) | ||||
| (ii) | Q’s Capital A/c | Dr. | 10,000 | |
| R’s Capital Ale | 20,000 | |||
| ToP’s Capital A/e | 30,000 | |||
| (Being Goodwill is adjusted) | ||||
Working Note:
Qs Gain = 1/2- 2/6= 1/6;
R’S Gain = 1/2-1/6 =2/6
and Gaining Ratio = 1:2.
Question 9: (Dinkar, Navita, and Vani)
Dinkar, Navita and Vani were partners sharing profits and losses in the ratio of 3 :2:1. Navita died on 30th June, 2024. Her share of profit for the intervening period was based on the sales during that period, which were ₹ 6,00,000. The rate of profit during the past four years had been 10% on sales. The firm closes its books on 31st March every year.
Calculate Navita’s share of profit. (CBSE 2019 Modified)
Answer:
Sales during that period of the firm from 1st April, 2024 to 30th June, 2024 ₹ 6,00,000
The rate of profit during the past four years had been 10% on sales
Profit of the firm from 1st April, 2024 to 30th June, 2024 is ₹ 6,00,000 × 10/100 = ₹ 60,000
Share of Profit is ₹ 60,000 × 2/6 = ₹ 20,000
Question 10: (Juhi, Riya, and Pari)
Juhi, Riya and Pari are partners sharing profits and losses in the ratio of3 :2:1.Riya died on 30th June, 2024. For the year ended 31st March, 2025, proportionate profit of 2024 is to be taken into consideration. During the year ended 31st March, 2025, bad debts of ₹2,000 had to be adjusted. Profit for the year ended 31st March, 2024 was ₹14,000 before adjustment of bad debts.
Calculate Riya’s share of profit till the date of her death.
Answer:
Annual Net profit = 14,000-2,000=12,000
Profit for 3 month (from 1st april, 2024 to 30th June, 2024)= 12,000×3/12=3,000
Riya’s Share of Profit= 3,000×2/6= 1,000