15 :- Radha, Tina and Reeta were partners sharing profits equally. Reeta died on 31st July, 2024. Radha and Tina decided to continue the business. Share of profit or loss of the deceased partner from the beginning of the year up to the date of death was to be determined on the basis of last year’s profit, which was Rs 4,50,000.
Pass the journal entry to record Reeta’s share of profit/loss upto the date of death.
Solution :-
WORKING NOTES :-
(i) Calculation of Reeta’s share in profit
Profit for the year = Rs 4,50,000
Profit upto 31st July = 4,50,000 x 4/12 = Rs 1,50,000
Reeta’s share in profit = 1,50,000 x 1/3
= Rs 50,000