Solution of Q 32 Retirement of Partner TS Grewal 2023-24 [CBSE]
Step-by-step solution of Question 32, Chapter 5 Retirement of a Partner, TS Grewal Class 12 Accountancy 2023-24 for the CBSE Board.
Question 32
Partnership Deed of C and D, who are equal partners, has a clause that any partner may retire from the firm on the following terms by giving a six-month notice in writing:
The retiring partner shall be paid—
- (a) the amount standing to the credit of his Capital Account and Current Account.
- (b) his share of profit to the date of retirement, calculated on the basis of the average profit of the three preceding completed years.
- (c) half the amount of the goodwill of the firm calculated at 1½ times the average profit of the three preceding completed years.
C gave a notice on 31st March, 2022 to retire on 30th September, 2022, when the balance of his Capital Account was ₹ 6,000 and his Current Account (Dr.) ₹ 500. Profits for the three preceding completed years ended 31st March, were: 2020—₹ 2,800; 2021—₹ 2,201 and 2022—₹ 1,600.
Determine the amount due to C as per the partnership agreement.
Solution
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About this solution
This is Chapter 5 Retirement of Partner of TS Grewal Edition 2023-24.
Written by Vijay Adarsh, teaching commerce since 2003 to Class 11, Class 12, B.Com, CA, CS and CMA students.
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