Question

Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2:2:1. On 1st July, 2019 Shreya died The books of accounts are closed on 31st March every year. Sales for the year 201819500000 and that

from 1st April to 30th June, 2019 were 1,40,000. Rate of profit during the past three years had been 10% on sales. Since Shreya's legal representative was her only son, who is specially abled, it was decided that

the profit for the purpose of settling Shreya's account is to be calculated as 20% on sales. Calculate Shreya's share of profits till the date of her death and pass necessary Journal entry for the same.

Answer 1

this is the solution and the j/e

P&l suspense a/c....dr 5600

to shreya's cap a/c 5600

Answer 2

Answer:

The total shreya's share of profits is Rs. $56,00$

Explanation:

Ajay, Bhawna and Shreya have been companions sharing earnings withinside the ratio of $2: 2: 1$

On 1st July, 2020 Shreya died

Shreya's percentage of Profit On sale from 1st April, 2020 to 30 th June, 2020 for three Month is to be calculated as  $20 \%$ on sales

Sales from 1st April to thirtieth June, 2020 have been Rs.$1,40,000$ for 3 Month

Profit from 1st April to thirtieth June, 2020 (for three Month)

have been Rs. $1,40,000 \times 20 \div 100=28,000$

Shreya's percentage of Profit $=$ Rs. $28,000 \times 1 \div 5=5,600$