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:
