[ISC] Q. 6 Death of Partner Solution TS Grewal Class 12 (2023-24)

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Solution to Question number 6 of the Death of Partner Chapter of TS Grewal Book ISC Board 2023-24 Edition?

Harpal, Ranjit and Manjit were partners sharing profits and losses in the ratio of 4 : 3 : 1. They close their books of account every year on 31st March. Ranjit died on 30th September, 2022. The firm’s profits for the previous years ended 31st March, were:

YearProfit (₹)
2017-183,50,000
2018-193,00,000
2019-201,10,000
2020-2190,000 (Loss)
2021-221,60,000

Harpal and Manjit decided to share future profits in the ratio of 3 : 2.

Goodwill is to be valued on the basis of 2 year’s purchase of average profit of 4 completed years preceding the year of death of a partner.

Pass Journal entry to record Ranjit’s share of Goodwill.

Solution:-

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