Class 12 Accounts chapter 5 Retirement of a Partner | Meaning, Adjustments, Formulas, PYQs (2020–2024)

👉 Retirement of a partner = Jab ek partner voluntarily firm se nikalta hai ya agreement ke basis par retire hota hai.

👉 Us waqt firm ka reconstitution hota hai: profit‑sharing ratio change, goodwill adjust, assets & liabilities revalued, aur retiring partner ka settlement hota hai.

📝 Key Points

• New Profit Sharing Ratio (NPSR) → Remaining partners ka ratio after retirement.
• Gaining Ratio → Ratio in which continuing partners acquire retiring partner’s share.
• Goodwill Treatment → Retiring partner ko compensate karna padta hai.
• Revaluation A/c → Assets & liabilities ki fair value adjust hoti hai.
• Reserves & Accumulated Profits → Old ratio me distribute hote hain.
• Settlement of Retiring Partner → Cash, loan account, ya installments me.

🔑 Formulas

• Gaining Ratio = New Share – Old Share
• New Ratio = Old Ratio + Gain
• Retiring Partner’s Due = Capital + Share of Reserves + Share of Revaluation + Share of Goodwill – Drawings/Adjustments

📌 PYQs (Past 5 Years – Corrected)

2024 (CBSE Delhi) – A, B and C are partners sharing profits in 3:2:1. C retires and his share is taken by A and B in 2:1. Calculate new ratio and gaining ratio. (3 marks)

2023 (CBSE All India) – Explain the treatment of goodwill at the time of retirement of a partner. (3 marks)

2022 (CBSE Delhi) – A, B and C are partners. B retires. On that date, firm’s goodwill is valued at ₹60,000. Pass necessary journal entries if goodwill is not appearing in the books. (4 marks)

2020 (CBSE Delhi) – X, Y and Z are partners sharing profits in 5:3:2. Z retires. Calculate new profit‑sharing ratio of X and Y. (2 marks)

(2021 skipped – exam cancel due to COVID)

🎯 Exam Tip

• Agar Q me Goodwill diya ho → Retiring partner ko compensate karna compulsory hai.
• Agar Q me Revaluation diya ho → Profit/Loss old ratio me distribute hoga.
• Agar Q me Settlement diya ho → Retiring partner ka balance ya to cash me ya Loan A/c me transfer hota hai.