[ISC] Q. 4 Death of Partner Solution TS Grewal Class 12 (2023-24)

Solution to Question number 4 of the Death of Partner Chapter of TS Grewal Book ISC Board 2023-24 Edition?

Ramu, Rahim and Rehman were partners in a firm. Dharam died on 31st May, 2022. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death. Profits for the years ended 31st March, 2020, 2021 and 2022 were ₹ 18,000; ₹ 19,000 and ₹ 17,000 respectively.

Calculate Dharam’s share of profit till his death and pass necessary Journal entry for the same when:

(i) there is no change in profit-sharing ratio of remaining partners, and

(ii) there is change in profit sharing ratio of remaining partners, new ratio being 3 : 2.

Solution:-