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Aditi, Kavya and Sohail were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2017 Sohail died. According to the partnership deed, his legal representatives are entitled to the following : (a) Capital as per Balance Sheet (Rs 60,000) (b) Interest on capital 6% p.a., till the date of death. (c) Share of profit to the date of death on the basis of the average profits of the last four years. (d) Share of goodwill to be determined on the basis of the three years purchase of the average profits of last four years. The profits of last four years were : Rs 30,000, Rs 50,000, Rs 40,000 and Rs 60,000 |
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Answer» Aditi, Kavya and Sohail were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2017 Sohail died. According to the partnership deed, his legal representatives are entitled to the following : (a) Capital as per Balance Sheet (Rs 60,000) (b) Interest on capital 6% p.a., till the date of death. (c) Share of profit to the date of death on the basis of the average profits of the last four years. (d) Share of goodwill to be determined on the basis of the three years purchase of the average profits of last four years. The profits of last four years were : Rs 30,000, Rs 50,000, Rs 40,000 and Rs 60,000 |
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