30 :- Shrish, Harit and Asha were partners in a firm sharing profits in the ratio of 5:4:1. Shirish died on 30th June 2018. On this date, their balance sheet was follows :
According to the partnership deed, in addition to deceased partner’s capital, his executor is entitled to
(i) Share in profits in the year of death on the basis of average of last two years profit. Profit for the year 2016 -17 was Rs 60,000.
(ii) Goodwill of the firm was to be valued at 2 years purchase of average of last two years profits.
Prepare Shirish’s capital account to be presented to his executor.
31 :- Madhav, Raghav and Purav were partners in a firm sharing profits and losses in the ratio of 3:1:1. Their Balance sheet as at 31st March 2023, was as follows:
Purav died on 30th September, 2023. According to partnership deed, his legal representatives are entitled to the following :
(i) Balance in his capital account.
(ii) Share of profit upto the date of death to be calculated on the basis of last year’s profit.
(iii) Share of goodwill calculated on the basis of three years purchase of average profits of last four years.
(iv) Interest on capital @12% p.a.
Purav’s share of profit was Rs 3,000 and the average profit of last four years was Rs 50,000. Purav’s drawings upto the date of death were Rs 10,000.
Prepare Purav’s Capital Account to be rendered to his legal representatives.
32 :- X, Y and Z were partners in a firm sharing profits in the ratio of 2:2:1. On 31st March 2025, their balance sheet was as follows :
Y died on 30th June, 2025. Partnership deed provided for the following on the death of a partner
(i) Goodwill of the business was to be calculated on the basis of 2 times the average profit of the past 5 years. Profits for the years ended 31st March, 2025, 31st March, 2024, 31st March, 2023, 31st March, 2022 and 31st March, 2021 were Rs 3,20,000 (loss); Rs 1,00,000; Rs 1,60,000; Rs 2,20,000 and Rs 4,40,000 respectively.
(ii) Y’s share of profit or loss from 1st April, 2025 till his death was to be calculated on the basis of the profit or loss for the year ended 31st March, 2025.
You are required to calculate the following
(a) Goodwill of the firm and Y’s share of goodwill at the time of his death.
(b) Y’s share in the profit or loss of the firm till the date of his death.
(c) Prepare Y’s capital account at the time of his death to be presented to his executors.
33 :- Arun, Bhima and Nakul are partners in a firm sharing profits in the ratio of 1:1:3. Their capital accounts showed the following balances on 1st April, 2022 :
Arun – Rs 2,00,000 ; Bhim – Rs 1,50,000 and Nakul – Rs 4,50,000
Firm closes its accounts every year on 31st March. Bhim died on 31st March 2023. In the event of death of any partner, the partnership deed provides for the following :
(i) Interest on capital will be allowed to deceased partner only fro the first of day of the accounting year till the date of his death @10% p.a.
(ii) The deceased partner’s share of goodwill of the firm will be calculated on the basis of 2 years purchase of the average profit of the last three years. The profits of the firm for the last three years ended 31st March, were : 2021 – Rs 90,000; 2022 – Rs 2,00,000 and 2023 – Rs 1,60,000
(iii) His share of profits till the date of death : The profit of the firm for the year ended 31st March, 2023 was Rs 1,60,000 before providing for interest on capital. Bhim’s executor was paid the sum due in two equal annual installments with interest @10% p.a.
Prepare Bhim’s capital accounts as on 31st March, 2023 to be presented to his executor and his executor’s loan account for the year ending 31st March, 2024 and 31st March, 2025.
Question 1 to 5 (New Profit – Sharing Ratio and Gaining Ratio)
Question 6 to 8 (Deceased Partner’s Share of Goodwill)
Question 9 to 13 (Calculation of Profit Share of a Deceased Partner)
Question 14 to 18 (Calculation of Profit Share of a Deceased Partner)
Question 19 to 23 (Calculation of Profit Share of a Deceased Partner)
Question 24 (Deceased Partner’s Share of Goodwill and Profit)
Question 25 to 29 (Determination of Amount Payable to Executors of a Deceased Partner)
Question 30 to 33 (Determination of Amount Payable to Executors of a Deceased Partner)
Question 34 (Adjustment of Capital)
Question 35 (Section 37 of the Indian Partnership Act)