[ISC] Q. 8 Death of Partner Solution TS Grewal Class 12 (2023-24)

Share your love

Solution to Question number 8 of the Death of Partner Chapter of TS Grewal Book ISC Board 2023-24 Edition?

Ashok, Mayank and Mamta were partners in a firm sharing profits in the ratio of 4 : 3 : 1. The firm closes its books on 31st March every year. On 1st February, 2023, Mayank died and it was decided that the new profit sharing ratio between Ashok and Mamta will be equal. The Partnership Deed provided for the following on the death of a partner:

(a) His share of goodwill is to be calculated on the basis of half of the profits credited to his account during the precious four completed years.

The firm’s profits for the last four years ended 31st March, were:

2019 – ₹ 1,50,000, 2020 – ₹ 50,000, 2021 – ₹ 40,000, and 2022 – ₹ 80,000.

(b) His share of profit in the year of his death was to be computed on the basis of average profit of past two years.

Pass necessary Journal entries for goodwill and profit to be transferred to Mayank’s Capital Account.

Solution:-

Share your love
Anurag Pathak
Anurag Pathak

Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his Youtube channel for free lectures

Articles: 7087

Leave a Reply

Your email address will not be published. Required fields are marked *

x