14 :- X, Y and Z were partners sharing profit and lossses in the ratio of 3:2:1. Y died on 30th June, 2025. Profit from 1st April, 2025 to 30th June, 2025 was Rs 3,60,000. X and Z decided to share profits and losses in the ratio of 3:2 with effect from 1st July 2025.
Pass the necessary journal entries to record Y’s share of profit up to the date of death.
Solution :-
WORKING NOTES :-
(i) Calculation of Y’s share of profit
Y’s share = 3,60,000 x 2/6 = Rs 1,20,000
It is to be borne by gaining patners in gaining ratio
(ii) Calculation of gaining ratio
X’s gain = 3/5 – 3/6 = 3/30
Z’s gain = 2/5 – 1/6 = 7/30
Gaining ratio = 3:7
X’s share = 1,20,000 x 3/10 = Rs 36,000
Z’s share = 1,20,000 x 7/10 = Rs 84,000