35 :- Ramesh, Suresh and Dinesh were partners sharing profits and losses in the ratio of 3:2:1. Dinesh died on 1^st May, 2024 on which date the capitals of Ramesh, Suresh and Dinesh after all necessary adjustments stood at Rs 1,20,000, Rs 80,000 and Rs 50,000 respectively. Ramesh and Suresh decide to carry on the business for 8 months without settling the account of Dinesh. During the period of 8 months ended 31^st December, 2024, profit of Rs 40,000 is earned by the firm.
State which of the options available with Dinesh’s executor under section 37 of the Indian Partnership Act 1932 should be exercised.
Also calculate the total amount payable to Dinesh’s executor if Ramesh and Suresh clear the dues of Dinesh on 31^st December, 2024.

Solution :-

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)