Question

41. X was a partner in a firm having three equal partners. He died on 25th May,
2019. On that date his capital account showed a credit balance of 14,000
and drawings account had a debit balance of 4,000. Partnership deed
provided inter alia, that on the death of any partner :
(i) the goodwill was to be valued on the basis of such partner's share of
2 years profits, calculated on the average of 5 years profits immediately
preceeding the year of death less 20% and
(ii) deceased partner's share of profit for the period of current year up
to the date of death to be based on the profit of the previous year plus
10%
Firm's profits for the previous five years ending on 31st December each
year were
2014 * 3,600 2015 * 2,000 (loss)
2016 7 4,000 2017 * 6,000, 2018 * 6,400
Calculate the amount of goodwill and share of profit to be credited to X
Also prepare his capital account to be submitted to his exceutors. Calculations
be made to the nearest rupee
(Ans : Amount Payable to Executors 14,298]​

Answer 1

Answer:

i literally turned 16 on may 25th 2019

sorry for the spam