Question

пи.
17. A, B and C were partners in a firm sharing profits in 3 : 2 :1 ratio. The firm closes its books on 31st March
every year. B died on 12th June, 2007. On B's death the goodwill of the firm was valued at Rs. 60,000. On B's
death his share in the profits of the firm till the time of his death was to be calculated on the basis of
previous year's profit which was Rs. 1, 50, 000, Calculate B's share in the profit of the firm. Pass necessary
journal entries for the treatment of goodwill and B's share of profit at the time of his death.
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Answer 1

Journal entry for treatment of goodwill:

Gaining partners Capital A/C

To Sacrificing partners capital A/c