PARTICULARS AMT PARTICULARS AMT
TO BAL B/D BY BAL B/D
(CAP BALANCE (C CAP = LIA)
GIVEN IN ASSET)
TO CURRENT BY CURRENT
( CURRENT BALANCE (current balance
GIVEN IN ASSET) given in lia side )
TO DEF REV EXP BY G/R
TO P AND L BY P AND L
TO GOODWILL ( C SHARE)
(GIVEN IN ASSET
SIDE) HIS SHARE
TO REVLN LOSS BY REVLN PROFIT
TO C LOAN (GIVEN BY C LOAN ( GIVEN
IN ASSET SIDE) IN LIA)
DRAWINGS BY INT ON CAP (P 1250
TO INT ON & L SUSPENSE)
DRAWING
TO P AND LOSS BY P AND L 2500
SUSPENSE (IF LOSS) SUSPENSE(IF
ONLY OLD RATIO
IS GIVEN)
To c executors Bal fig OR
A CAP
B CAP
( IF OLD AND
NEW RATIO IS
GIVEN )
BY SALARY /
COMM
BY A
BY B
(FOR G/W)
total Total
DECEASED PARTNER CAP A/C
CALCULATE INT ON CAPITAL
A B C ARE PARTNERS IN THE RATIO 5 :3:2. C DIED ON 30TH
JUNE 2023
HIS CAPITAL IS 500000
INT ON CAPITAL IS 10%
CALCULATE INT ON CAPITAL
SOLUTION
HIS CAPITAL X R/100 X N/12 =
500000 X 10/100 X 3/12 = 1250
CALCULATION OF SHARE OF PROFIT TILL DEATH
HIS SHARE OF LAST YEAR PROFIT X HIS SHARE X N/12
PROFIT BASED ON
LAST YEAR PROFIT 50000 X 2/10 X 3/12 = 2500
HIS SHARE OF 10000+5000+6000 = 21000 TOTAL PROFIT
PROFIT BASED ON AVERAGE PROFIT = 21000/3 = 7000
AVERAGE PROFIT
OF LAST 3 YEARS AVERAGE PROFIT X HIS SHARE X N/12
7000 X 2/10 X 3/12 =
HIS SHARE OF 1YR PROFIT - 10000
PROFIT BASED ON 2ND PROFIT – 20000
TOTAL PROFIT OF 3RD LOSS - 3000
LAST 3 YEARS TOTAL 10000 + 20000-3000 = 27000
TOTAL PROFIT X HIS SHARE X N/12
27000 X 2/10 X 3/12 =
HIS SHARE OF LAST YEAR PROFIT = 50000
PROFIT BASED ON LAST YEAR SALES = 200000
ON SALES SALES FOR INTERVENING PERIOD = 40000
LYPROFIT/LY SALES X SALES TILL DEATH X
HIS SHARE
50000/200000 X 40000 X 2/10= 2000
CALCULATION OF SALARY
SALARY TO C IS 6000 X 3 = 18000
6000 PER MONTH
SALARY TO C IS 6000 X 3/12 = 1500
6000 PER YEAR
SALARY TO C IS 6000 X 3/3 = 6000
6000 PER QUARTER
TREATMENT OF GOODWILL
A B C ARE PARTNERS IN THE RATIO 5 :3:2. C DIED ON 30TH
JUNE 2023. GOODWILL OF THE FIRM IS VALUED AT 200000
PASS J E
C SHARE OF GOODWILL 200000 X 2/10 = 40000
GAINING RATIO 5:3
A SHARE = 40000X 5/8
25000
B SHARE = 40000 X 3/8=
15000
GAINING PARTNER A/C DR A CAP 25000
TO DECEASED PARTNER B CAP 15000
TO C CAP 40000