Page 125 - ISCDEBK-12

Death of a Partner 5.23

Dr. MEHAR’S EXECUTOR’S ACCOUNT Cr.
Date Particulars ` Date Particulars `
2019 2019
Aug. 1 To Bank A/c 24,000 Aug. 1 By Mehar’s Capital A/c 1,24,000
2020 2020
Jan. 31 To Bank A/c 30,000 Jan. 31 By Interest A/c 5,000
(` 25,000 + ` 5,000) (` 1,00,000 × 6/12 × 10/100)
Mar. 31 To Balance c/d 76,250 Mar. 31 By Interest A/c (Accrued) 1,250
(` 75,000 + ` 1,250) (` 75,000 × 2/12 × 10/100)
1,30,250 1,30,250
2020 2020
July 31 To Bank A/c 28,750 April 1 By Balance b/d 76,250
(` 25,000 + ` 1,250 + ` 2,500) July 31 By Interest A/c 2,500
(` 75,000 × 4/12 × 10/100)
2021 2021
Jan. 31 To Bank A/c 27,500 Jan. 31 By Interest A/c 2,500
(` 25,000 + ` 2,500) (` 50,000 × 10/100 × 6/12)
Mar. 31 To Balance c/d 25,417 Mar. 31 By Interest A/c 417
(` 25,000 + ` 417) (` 25,000 × 10/100 × 2/12)
81,667 81,667
2021 2021
July 31 To Bank A/c 26,250 April 1 By Balance b/d 25,417
(` 25,000 + ` 417 + ` 833) July 31 By Interest A/c 833
(` 25,000 × 10/100 × 4/12)
26,250 26,250
Working Notes:
1. Mehar’s Share of Goodwill:
` 505 000, , + ` 70 000, + ` 90 000, − ` 375 000, ,
Firm’s Goodwill = × 25 . = ` 1,75,000
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2
Mehar’s Share of Goodwill = ` 1,75,000 × = ` 35,000.
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2. Mehar’s Share of Profit (Loss) till date of death:
` 70 000, + ` 80 000, − ` 375 000, ,
Average Profit (Loss) of last three years = = ` 75,000 (Loss)
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2 4
Mehar‘s Share of Loss = ` 75 000 × × = ` 5,000.
,
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3. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 1,29,000 By Mehar’s Drawings A/c 25,000
To Investment A/c 21,000 By Mehar’s Executor’s A/c 24,000
By Balance c/d 1,01,000
1,50,000 1,50,000