Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ram, Manu and Hari were partners in a firm sharing profits equally. Hari died on 30th June, 2024. His share of profit from the close of the last accounting year till the date of death was to be calculated on the basis of the average profit of the three completed financial years before death. Profits for the years ended 31st March, 2022, 2023 and 2024 were ₹1,10,000, ₹1,20,000 and ₹1,30,000 respectively. Calculate Hari’s share of profit till the date of death and pass the necessary Journal entry for the same.
Total profit for the preceding three years = 1,10,000 + 1,20,000 + 1,30,000 = ₹3,60,000. Average profit = 3,60,000 / 3 = ₹1,20,000. Hari died on 30th June, 2024, i.e. 3 months after the beginning of the year (1st April to 30th June, 2024).
Hari’s share of profit = 1,20,000 × 1/3 × 3/12 = ₹10,000.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2024 Jun 30 | Profit & Loss Suspense A/c Dr. | 10,000 | ||
| To Hari’s Capital A/c | 10,000 | |||
| (Hari’s share of profit till the date of death credited to his Capital Account) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 6 Q.13 - Death of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 6 - Death of a Partner.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Chapter 6 Q.13 - Death of a Partner" instantly.