16 :- Manoj, Rakesh and Harsh were partners sharing profits in the ratio of 2:2:1. Manoj died on 30th June, 2024. Rakesh and Harsh decided to continue the business. Share of profit or loss of the deceased partner from the beginning of the year upto the date of death was to be determined to be determined on the basis of last year’s profit. Last year’s loss was Rs 2,00,000
Pass necessary journal entry to record Manoj’s share of profit/loss upto the death of partner.
Solution :-
WORKING NOTES
(i) Calculation of Manoj’s share in loss
Loss of the year = Rs 2,00,000
Loss upto 30th june = 2,00,000 x 3/12
= Rs 50,000
Manoj’s share in loss = 50,000 x 2/5
= Rs 20,000