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Abha, Beena and Chanda were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Abha died on 1st July, 2025. The Partnership Deed provided that Abha’s executors are entitled to her share of profit till the date of death calculated on the basis of sales for the immediate previous year. Sales for the year ended 31st March, 2025 were ₹12,00,000, and the profit for the same year was ₹3,00,000. Sales show a growth trend of 20% and the percentage of profit earned remains the same. Journalise the transaction along with working notes.
Estimated profit for the current year (reflecting the 20% sales growth, at the same profit percentage) = 3,00,000 × 120/100 = ₹3,60,000. Abha’s share of profit for 3 months (1st April to 1st July, 2025) = 3,60,000 × 3/12 × 5/10 = ₹45,000.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2025 Jul 1 | Profit & Loss Suspense A/c Dr. | 45,000 | ||
| To Abha’s Capital A/c | 45,000 | |||
| (Abha’s share of profit till the date of death credited to her 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.23 - Death of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 6 - Death of a Partner.
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