6 :- X, Y and Z were partners in a firm sharing profit in the ratio of 3:2:1. The firm closes its books on 31st March every year. Y died on 30th June, 2024. On Y’ death, goodwill of the firm was valued at Rs 60,000. Y’s share in the profit of the firm till the date of his death was to be calculated on the basis of previous year’s profit which was Rs 1,50,000. Pass necessary journal entries for goodwill and Y’s share of profit at the time of his death.
7 :- P, R and S are in partnership sharing profits 4/8, 3/8 and 1/8 respectively. It is provided in the partnership deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profit credited to his account during the last four completed years.
R died on 1st April 2025. The firm’s profit for the last four years ended 31st March, were as
2022 – Rs 1,20,000; 2023 – Rs 80,000; 2024 – Rs 40,000; 2025 – Rs 80,000
(a) Determine the amount that should be credited to R in respect of his share of goodwill.
(b) Pass journal entry for adjustment of goodwill.
8 :- P, Q and R were partners in a firm sharing profits in the ratio of 3:2:1. P died and the new profit-sharing ratio of Q and R was agreed to be equal. On P’s death, goodwill of the firm was valued at Rs 60,000.
Pass the necessary entries for the treatment of goodwill under the following conditions:-
(a) When goodwill does not exist in the books of account; and
(b) When goodwill exists in the books of accounts at Rs 30,000.
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)