OMTEX CLASSES: Death of a partner Solution

Death of a partner Solution

Death of a partner Solution:


In the books of the firm.
Profit and Loss Adjustment A/c

Particulars
Rs.
Rs.
Particulars
Rs.
Rs.
To R.D.D. A/c

4000
By Machinery A/c

10000
To Revaluation Profit:





Ashish Capital A/c
3600




Satish Capital A/c
1200




Manish Capital A/c
1200
6000





10000


10000

Manish’s Capital A/c

Particulars
Rs.
Particulars
Rs.
To Drawings A/c
40000
By Balance b/d
50000
To Interest on Drawings A/c
1200
By Reserve Fund A/c
4000
To Executor’s Loan A/c
62500
By Profit and Loss Suspense A/c
6000


By Goodwill A/c
40000


By Profit and Loss Adjustment A/c
1200


By Interest on Capital A/c
2500

103700

103700

Working of Manish’s Share of Profit:
= Previous year’s Profit x Profit Sharing Ratio x Period.

Working of Manish’s Share of Goodwill: