Class 12 Accountancy TS Grewal Solutions Volume 1 Chapter 6 - Retirement/Death of a Partner

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Class 12 Accountancy TS Grewal Solutions Volume 1 Chapter 6 - Retirement/Death of a Partner

Free PDF Of Class 12 Accountancy Solutions Available on Vedantu

For students to understand the concepts and score good marks, TS Grewal Class 12, Chapter 6 Solutions are available on the Vedantu website. This chapter focuses on the aspects of accountancy regarding retirement or the death of a partner. TS Grewal Solutions Class 12 Accountancy Volume 1 Chapter 6 considered by most of the commerce students is helpful for different competitive examinations. Let us look into the different aspects of accountancy related to the death or retirement of a partner.

TS Grewal Solutions Class 12 Accountancy Volume 1 Chapter 6 - Retirement/Death of a Partner

Overview of Chapter 6

This chapter deals with the accountancy aspects of profit share when one of the partners is deceased or retiring. TS Grewal explains all the topics clearly. The students will benefit by understanding from the in-depth explanations, as well as getting the important tips required for the calculation of shares.

When it comes to profit sharing, some amounts are due for the deceased or retiring partner. These include credit balance of his capital in the share, credit balance remaining in his current account, shares related to gaining partners in the form of goodwill, the share of the profit when liabilities or assets are revalued, any interest associated with the capital, and any pending salary must be paid to them. Read in detail about these points in Chapter 6 Class 12 Accounts TS Grewal solutions.

The Balancing

Certain amounts should be deducted from the amount to be paid to the deceased or the retiring person. These points are best mentioned in Class 12 Accountancy Chapter 6 TS Grewal Solutions. The debit balance in the existing current account of the deceased or retiring partners has to be deducted, and the share related to accumulated loss or the existing goodwill has to be subtracted. Any drawings or interests related to those drawings have to be considered. Any loss incurred during the liabilities revaluation process and the assets also have to be accounted as well.

Important Parameters

Class 12 Accountancy Chapter 6 TS Grewal solutions mention the important parameters needed to calculate the shares for dead or retiring partners. These parameters include calculating the new gain sharing ratio, consideration for goodwill, proper adjustments for revaluation of liabilities and assets, distribution of accumulated losses and profits, distribution of reserves, settlements of accounts, and adjusting capitals as required. To learn the accountancy details related to the death or retirement of a partner, Class 12 TS Grewal Solution 2024-25 is a dependable option.

How to Refer TS Grewal Solutions for Class 12 to Score High Marks

Consider every aspect of the calculation very carefully.
Consider each case as an individual; do not consider that similar conditions will yield a similar result.
Practice different accountancy problems of the same kind repeatedly.
Practice different types of accountancy problems to increase the range of knowledge.
Students should focus on their weaknesses; make a list of them and practice more on these topics.
If students face any difficulty in understanding a concept, consult Ch 6 TS Grewal class 12 solutions.

Why Should the Students Prefer TS Grewal Solutions Class 12?

The solutions of TS Grewal are simple and easy to understand. It makes accounting much easier and more interesting for students.
These solutions are created as per the most recent CBSE syllabus and rules.
Students can put their accounting skills to the test with these answers. If they run into any difficulties, they can consult the solution before attempting to solve the problem again.
It contains in-depth solutions that will help students improve their accounting expertise. Even the most difficult questions are answered in a clear and simple manner.
These solutions are one of the best resources for preparing for the Class 12 board exam. It contains a variety of questions that can be used both in daily study sessions and during a review.
It is organised chapterwise and contains answers of all of the questions.
It is easily accessible and completely free.

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Conclusion

To learn in detail the accountancy aspect related to the retirement or death of a partner, Class 12 TS Grewal solutions 2024-25 is considered to be the best and most comprehensive study material. So, students can study these solutions in this article, and clear all their doubts thoroughly.

FAQs on Class 12 Accountancy TS Grewal Solutions Volume 1 Chapter 6 - Retirement/Death of a Partner

1. What happens when a partner retires or dies?

A partner's interest in a partnership firm is extinguished when he retires or passes away, which results in the firm's dissolution or reconstitution. A retiring partner or outgoing partner is a partner who leaves a firm. The grounds for a partner's retirement could be that he is too old, that he has a better opportunity in a different area, that he dislikes the co-partner's attitude, or any other reason. And obviously, death is inevitable and it can strike at any hour. To learn more about the topic, you can click here.

2. How are accumulated reserves, undistributed profits, and losses adjusted?

The accumulated reserves, undistributed profits, and losses are adjusted in the following ways: Any reserves or undistributed earnings that appear on the liabilities side of the Balance Sheet during the time of retirement are historical profits that were created to consolidate the firm's financial condition. The retiring partner has a claim to these profits. As a result, the accumulated reserve or undistributed profits/revenue should be divided amongst all partners in their original profit or loss sharing ratio. They do not appear in the Balance Sheet after the distribution is finished.

3. What is the meaning of revaluation of assets and liabilities?

At the time of a partner's retirement, as well as at the time of admission, a revaluation of assets and liabilities is required. The reassessment follows similar guidelines as the process of admission. Even if the Partnership Deed is silent, revaluing assets and liabilities is a good idea. A Profit and Loss Adjustment Account or Revaluation Account is made if everyone agrees to revalue the assets and liabilities upon a partner's retirement. The profit or loss from this account is distributed in the old ratio to all partners, including the retiring partner. Therefore, the assets and liabilities will be noted down at their new values in the books.

4. How is the new profit sharing ratio, gaining ratio, and sacrificing ratio calculated?

The partnership firm will be rebuilt if one of the partners dies or retires. The profit-sharing ratios of the remaining partners will alter significantly. Let's have a look at how the new profit sharing ratio, gaining, and sacrificing ratios are computed.

New profit sharing Ratio: The ratio by which the partners arrange to split future profits and losses.
Gaining Ratio: The ratio in which the partners have agreed to receive a portion of the profits generated by the other partners.
Sacrificing Ratio: In this ratio, the partners have agreed to give up their portion of profit to benefit the other partners. Old Ratio - New Ratio = Sacrificing Ratio.

5. How to prepare for this chapter - Retirement/Death of a partner?

To prepare for the chapter - retirement, and death of a partner, it is important to learn about its basic concepts. A student needs to be thorough with concepts and terms like accumulated reserves and undistributed profits and losses, revaluation of assets and liabilities, new profit-sharing, gaining ratio, and sacrificing ratio. A student needs to develop a strong foundation to consolidate his knowledge further on this topic. Students should also practice solving questions through sample papers. To get free study materials, students can explore the Vedantu app and website.