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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Trisha, Anisha and Rishika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2025 showed Capitals – Trisha ₹3,00,000, Anisha ₹2,00,000, Rishika ₹1,00,000; General Reserve ₹50,000, Creditors ₹50,000; Plant and Machinery ₹5,00,000, Stock ₹1,00,000, Debtors ₹60,000, Cash at Bank ₹40,000. Trisha died on 31st July, 2025. According to the Partnership Deed, the executors of the deceased partner were entitled to: (i) balance in the Partner’s Capital Account; (ii) salary @ ₹15,000 per quarter; (iii) share of goodwill calculated on the basis of twice the average of the past three years’ profits; (iv) share of profits from the closure of the last accounting year till the date of death, on the basis of last year’s profit. Profits for 2022-23, 2023-24 and 2024-25 were ₹1,00,000, ₹2,00,000 and ₹1,50,000 respectively. (v) Trisha withdrew ₹20,000 on 1st May, 2025 for personal use. Prepare Trisha’s Capital Account to be rendered to her executors. (CBSE 2023, Modified)
TRISHA’S CAPITAL ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Drawings A/c | 20,000 | By Balance b/d | 3,00,000 |
| To Trisha’s Executors’ A/c | 4,60,000 | By Salaries A/c | 20,000 |
| By Anisha’s Capital A/c (Goodwill) | 80,000 | ||
| By Rishika’s Capital A/c (Goodwill) | 40,000 | ||
| By General Reserve A/c | 20,000 | ||
| By Profit & Loss Suspense A/c | 20,000 | ||
| Total | 4,80,000 | Total | 4,80,000 |
Working Notes: Salary = 15,000 × 4/3 (months) = ₹20,000. Average profit = (1,00,000 + 2,00,000 + 1,50,000) / 3 = ₹1,50,000; Goodwill = 1,50,000 × 2 = ₹3,00,000; Trisha’s share = 3,00,000 × 2/5 = ₹1,20,000, borne by Anisha (₹80,000) and Rishika (₹40,000) in 2 : 1. Trisha’s share of last year’s profit for 4 months = 1,50,000 × 2/5 × 4/12 = ₹20,000. General Reserve share = 50,000 × 2/5 = ₹20,000.
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.27 - 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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