Question

(b) His share of profit in the year of his death was to be computed on the basis of average profit of past two years.
Pass necessary journal entries realting to goodwill and profit to be transferred to Y’s Capital Account.

Answer 1

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The outcome of politics of social divisions

depends on how the political leaders raise the

demands of any community". Explain the

statement

Answer 2

Calculation of Retiring Partner’s Share of Profit

Y's share of profit=75,000× $\frac{3}{8}$× $\frac{10}{12}$

                             =Rs 23,438

Average profit for last two years=Rs 75,000