Accountancy, asked by dwivedipappu09, 3 months ago

Ajay , vijay & son jevar partner is a Ajay Vijay and son jevar partner in a firm sharing profits in the ratio 1 2 1. The firm closes its
books on 31st March every year. on 30th September 2019 Vijay died. on that date his capital account
showed a Debit balance of 5,000. there was a Debit balance of 30000 in profit and loss account. The
Goodwill of the firm was valued at 380000. Vijay's share of profit in the year of his death was to be
calculated on the basis of average profit of the last five years. The profit for the last 5 years are 65000;
80000; 70000; 105000 and 130000.
pass necessary journal entries in the books of the form on Vijay's death.​

Answers

Answered by Anonymous
0

Answer:

dont know dear sir please find attached the following u can leave

Answered by Priyanshulohani
1

Answer:

Profit and Loss Appropriation Account

For the year ended 31st March 2018

Particulars

Amount (Rs.)

Particulars

Amount (Rs.)

To salary to be credited to capital accounts of:

By Profit for the year

15,00,000

Jay

1,80,000

By Jay’s Capital A/c

25,000

Vijay

1,80,000

3,60,000

To divisible profit to be credited to Capital accounts of:

Jay

3,05,800

Vijay

3,59,200

Karan

5,00,000

11,65,000

15,25,000

15,25,000

Working note 1:

Computation of divisible profit and its distribution between partners:

Divisible profit = 11,65,000

Jay’s share in divisible profit = 11,65,000 * 2/5 = 4,66,000

Vijay’s share in divisible profit = 11,65,000 * 3/5 = 4,66,000

Karan’s share in divisible profit = 11,65,000 * 1/5 = 2,33,000

Profit share guaranteed to Karan = 5,00,000

Deficiency to Karan’s share in profit = 5,00,000 – 2,33,000 = 2,67,000

Deficiency to be borne by Jay = 2,67,000 * 3/5 = 1,60,200

Deficiency to be borne by Vijay = 2,67,000 * 2/5 = 1,06,800

Final share in divisible profit for:

Jay = 4,66,000 – 1,60,200 = 3,05,800

Vijay = 4,66,000 – 1,06,800 = 3,59,200

Karan = 2,33,000 + 1,60,200 +1,06,800 = 5,00,000

Dr. Partner’s Capital A/c Cr.

Date

Particulars

Jay (Rs.)

Vijay (Rs.)

Karan (Rs.)

Date

Particulars

Jay (Rs.)

Vijay (Rs.)

Karan (Rs.)

2018

2018

Mar. 31

To Profit & Loss Appropriation A/c

25,000

Mar. 31

By Profit & Loss Appropriation A/c

1,80,000

1,80,000

Mar. 31

To Balance c/d

4,60,800

5,39,200

5,00,000

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