A, B and C are equal partners and college friends with Capital of 3,00,000 each. A
died due to heart failure on 1st April, 2016. The· profit on revaluation of assets was
30,000. Goodwill share of A was 40,000. General Reserve A/ c had a balance of~
1,00,000 and Advertisement Suspense A/ c 20,000 appeared on Asset side.
It was decided by B and C that the entire profit on revaluation of assets and entire
balance of General Reserve after setting aside Advertisement Suspense be credited to
A's account besides his share of goodwill and it should be paid in cash to heirs of A.
They offered Mrs. A to become partner in the firm on the same term in lieu of
capital of A to which Mrs. A agreed. · ·
Pass necessary journal entries.
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died due to heart failure on 1st April, 2016. The· profit on revaluation of assets was
30,000. Goodwill share of A was 40,000. General Reserve A/ c had a balance of~
1,00,000 and Advertisement Suspense A/ c 20,000 appeared on Asset side.
It was decided by B and C that the entire profit on revaluation of assets and entire
balance of General Reserve after setting aside Advertisement Suspense be credited to
A's account besides his share of goodwill and it should be paid in cash to heirs of A.
They offered Mrs. A to become partner in the firm on the same term in lieu of
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