Question

Q4.. P Q & R were partners in a firm sharing profits in the ratio 2:2:1. The Partnership Deed provided
that on the death of the partner his executors will be entitled for the following:
I
a) Interest on Capital @ 12% p.a.
b) Interest on Drawings @ 18% p.a.
c) Salary of '12,000 p.a.
d) Share in the profit of the firm (up to the date) on the basis of previous years profit.
P died on 31" May 2020. His Capital was '80,000. He had withdrawn 15,000 and interest on his drawing
was calculated as 1,200. The profit of the firm for the previous year ended 31 March 2020 was '30,000.
Pass necessary journal entries on P's death

Answer 1

Answer:

P's A/C Dr 10400

drawing+ interest a/c Dr 16200

To cash / bank account. 26600

( salary , 24000, interest on capital ,1600, profit,1000)