Question

Karim,saleem and Raheem were partners in a firm sharing profits and losses in the ratio of 3:4:3.The firm closes its books on 31st march every year.On 1-10-2019 karim died.On karim's death the goodwill of the firm was valued at 350000.Karim's share in the profit of the firm in the year of his death was to be calculates on the basis of average profit of last four years. The profits fir the last four years were:-
2015-16 = 170000.
2016-17 = 130000.
2017-18 = 190000.
2018-19 = 110000.
The total amount payable to karim's executor on his death was 735000.It was paid on 15-10-2019.
pass necessaey journal entries for above transactions.​

Answer 1

Explanation:

1.karim executor a/c dr. 7,35,000

to bank a/c 7,35,000