Manoj, Rakesh and Harsh were partners sharing profits in the ratio of 2:2 1. Manoj died on 30th June, 2012)
Rakesh and Harsh decided to continue the business. Share of profit or loss of the deceased partner frem
the beginning of the year up to the date of death was to be determined on the basis of last year's prett
Last year's loss was 2,00,000
Pass necessary Journal entry to record Manoj's share of profit/loss up to the date of death
Answers
hope it helps as par is not given so we have to pass this journal entry
Manoj's share after his death would be 20,000
Given: Profit sharing ratio as 2: 2: 1.
To Find : Share of profit/loss of Manoj.
Solution :
According to the question,
The profit sharing Ratio is Manoj : Rakesh : Harsh
2: 2 : 1
Out of these partners, Manoj died.
Also, Last Year's Loss = 2,00,000
Therefore,
2,00,000 * 2/5 * 3/12 = 20,000
Where 2/5 is the share of the deceased Partner.
and, 3/12 is the ratio of the month he has worked in the firm.
JOURNAL ENTRY FOR RECORDING SHARE OF THE DECEASED PARTNER
Profit and loss suspense a/c ------dr 20,000
to Manoj's Capital a/c 20,000
( being Manoj's share transferred to his capital account)
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