Question

Q.18 Vinod, Deepak and Mukesh were partners in a firm sharing profits in the ratio of 4:4:2. The firm
closes its books on 31st March every year. Deepak died on 24 August 2018. On Deepak's Death the
goodwill of the firm was valued at 1, 50,000. The partnership deed provided that on the death of a
partner his share in the profits of the firm in the year of his death will be calculated on the basis of last
year's profit. The profit of the firm for the year ended 31st March 2018 was 4,00,000. Give necessary
journal entries and calculation of Deepak's Share of profit​

Answer 1

Answer:

Deepak share in good will = 150000×4/10=60000

Vinod and Mukesh are remaining partners their gaining ratio is 4:2 (2:1)

Deepak share in profit =

last year profit × his share × time

400000×4/10× 146/365

=64000

Journal entries

for goodwill

Vinod capital account. dr 40000

Mukesh capital account dr 20000

To Deepak capital account. 60000

for profit

Profit &loss suspense account dr 64000

To Deepak capital account. 64000