(i) Profits to be divided as Nisha \[\frac{1}{2}\], Saisha \[\frac{1}{3}\] and \[\frac{1}{6}th\] to be transferred to reserves. |
(ii) The accounts are closed on 31st March each year. |
(iii) In the event of the death of a partner, the executors will be entitled to the following: |
(a) Capital to the credit of the deceased partner on the date of the death. |
(b) Interest on capital at 12% p.a. |
(c) Proportion of profit to the date of death based on the average profits credited for the last 3 years. |
(d) Share of goodwill based on three years' purchase of the average profits of the preceding 3 years. |
Answer:
Transferred to Nisha's executor's A/c = Rs. 9,22,650
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