27 :- Trisha, Anisha and Rishika were partners in a firm sharing profits and losses in the ratio of 2:2:1. Their balance sheet as at 31st March, 2025 was as follows:
Trisha died on 31st July, 2025. According to the partnership deed, the executors of the deceased partner were entitled to :
(i) Balance in partner’s capital account
(ii) Salary @ Rs 15,000 per quarter.
(iii) Share of goodwill calculated on the basis of twice the average of past three year’s profits.
(iv) Share of profit from the closure of the last accounting year till the date of death on the basis of last year’s profit. Profit for 2022-23, 2023-24 and 2024–25 were Rs 1,00,000, Rs 2,00,000 and Rs 1,50,000 respectively.
(v) Trisha withdrew Rs 20,000 on 1st May, 2025 for her personal use.
Showing your working clearly, prepare Trisha’s capital account to be rendered to her executors.
Solution :-
WORKING NOTES :
(i) Calculation of goodwill of the firm
Average profit of past 3 years = 1,00,000 + 2,00,000 + 1,50,000/3
= 4,50,000/3
= Rs 1,50,000
Goodwill of the firm = Average profit of last 3 years x 2
= 1,50,000 x 2
= Rs 3,00,000
(ii) Calculation of partner’s share in goodwill
Trisha’s share in goodwill = 3,00,000 x 2/5
= Rs 1,20,000