Question

On 1-4-2019 x, y and z are partners sharing profit and losses in the ratio of 2:2:1. They
been charged to Profit and Loss account every year. Account were closed on 31st March
had a joint life insurance policy of * 2,40,000 and the annual premium of 3 8,000 has
annually. z died on 15 August, 2019. Besides his capital and insurance money z's Legal
representatives are entitled to :
(i) Interest on Capital at 10% per annum upto the date of death.
(ii) Partner's share in profit based on average profit of last four completed year.
(iii) Partner share in goodwill (premium), which is to be calculated at three years of
purchase of average profit of the last four years.
(iv) z's Capital on 1st April, 2019 at * 3,60,000 and his drawings from the date to the
death amounted to 22,000.
(v) Profit and Loss for last four years were * 60,000; 1,12,000; * 20,000 (loss) and
*1,36,000 respectively.
Prepare Legal representative's account of z.​

Answer 1

Answer:

joint all this and after calculate profitts