Q. 61 DK Goel Retirement of Partner Solutions Class 12 CBSE (2024-25)

Here are the solutions of Question number 61 of Retirement of Partner chapter 5 of DK Goel Class 12 CBSE (2024-25)

Hari, Mohan and Sohan were partners in a firm sharing profits in 2 : 2 : 1 ratio. The firm closes its books on 31st March every year. Mohan died on 24-8-2021. On Mohan’s death the goodwill of the firm was valued at ₹ 75,000. The partnership deed provided that on the death of a partner his share in the profits of the firm in the year of his death will be calculated on the basis of last year’s profit. The profit of the firm for the year ended 31-3-2021 was ₹ 2,00,000. Calculate Mohan’s share of profit till the time of his death and pass the necessary journal entries for the treatment of goodwill and his share of profit.

[Ans. Mohan’s share of goodwill ₹ 30,000; Mohan’s share of profit ₹ 32,000.]

Hint: Number of Days up to the date of death = 146.

Solution:-