Question

Raja, Mohan, Roy are partners in a firm sharing profits and losses in the ratio of 4 : 3 :1. As per the terms of Partnership Deed on the death of any partner, Goodwill was to be valued at 50% of the net profits credited to that Partner’s Capital Account during the last three completed years before her death. Raja died on 28th February, 2019. The profits for the last five years were 2014 – Rs. 60,000; 2015 – Rs. 97,000; 2016 – Rs. 1,05,000; 2017 – Rs. 30,000 and 2018 – Rs. 84,000. On the date of Raja’s death. Calculate the amount of Raja’s share of Goodwill in the firm. The new profit sharing ratio between Mohan and Roy will

Answer 1

Answer:

gaining ratio or sacrificing ratio will be calculated as . A =capital account 6000

B= capital account 6000

c=capital account 6000

to good will be account = 18000

Explanation:

ganing /sacrificing ratio = new ratio - old ratio

therefore :

for A =1/3 -3/6

=2-3/6

=1/6 ganing ratio

for B =1/3 - 2/6

=no change

For C =1/3 - 1/6

=2-1 /6

=1/6 sacrificing ratio

C 's capital account Dr.3000

To A'S Capital account 3000