(i) Interest on capital will be calculated at the rate of 6% p.a. |
(ii) The deceased partner's share in the goodwill of the firm will be calculated on the basis of 2 years' purchase of the average profit of last three years. The profits of the firm for the last three years were Rs. 80,000; Rs. 90,000 and Rs. 1,30,000 respectively. |
(iii) His share in the reserve fund of the firm will be paid. The reserve fund of the firm was Rs. 80,000 at the time of A?s death. |
(iv) His share of profit till the death will be calculated on the basis of sales. It is also specified that the sales during the year 2016-2017 were Rs. 15,00,000. The sales from 1st April, 2017 to 30th September, 2017 were Rs. 5,00,000. |
Answer:
Dr P?s Capital A/c Cr
Working Notes 1. Firm's Goodwill \[=\frac{80,000+90,000+1,30,000}{3}\times 2=Rs.\,2,00,000\] P's Share of Goodwill\[=2,00,000\times \frac{1}{5}=Rs.\,40,000\] to be contributed by Q and R in gaining ratio i.e. 1 : 3. 2. Profit % \[=\frac{\text{Profit}}{\text{Sale}}\times 100=\frac{3,00,000}{15,00,000}\times 100=20%\] P's Share of Profit \[=5,00,000\times \frac{20}{100}\times 1=Rs.\,20,000\] Particulars Amt (Rs.) Particulars Amt (Rs.) To P's Executors A/c 1,79,000 By Balance b/d 1,00,000 By Interest on Capital A/c 3,000 \[\left( 1,00,000\times \frac{6}{100}\times \frac{6}{12} \right)\] By Q's Capital A/c 10,000 By R's Capital A/c 30,000 By Reserve Fund A/c \[\left( 80,000\times \frac{1}{5} \right)\] 16,000 By Profit and Loss Suspense A/c 20,000 1,79,000 1,79,000
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