Question

S, T and W are in partnership sharing profits in the ratio of 5:3:2. Their partnership deed states that

on the death of a partner his shares of goodwill is to be valued at one-half of the net profits credited

to his account during the last five years.

The partnership firm takes the financial year as the accounting year.

S died on 1st April, 2018. The firm earned profits of `52,000; `75,000; `56,000; `68,000 and

`59,000 in five years. Calculate the share of goodwill due to S and pass the necessary journal entry.​

Answer 1

okkkkh the okkkkh the okkkkh kkkkk