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Question 47 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 47 Chapter 6 of +2- Part
Q-47 - CH-6 - Usha +2 Book 2018 - Solution

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Question 47 Chapter 6 of +2-Part-1

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47. (Deceased Partner’s Share of Profit) A , B, and C are equal partners in a firm whose books are closed the 31st of December every year. A died on 31st March 2019 and according to the agreement, his share of profits up to the date of death is to be calculated on the basis of the average profits of the last three years. Net profits of the last three years were Rs. 8,000 ; Rs. 11,000 and Rs.17,000. Calculate A’s share of profits and pass the necessary journal entry.

The solution of Question 47 Chapter 6 of +2 Part-1: –

Journal
Date  Particulars
L.F.DebitCredit
 Profit & loss suspense A/cDr. 1,000 
 To A’s capital A/c   1,000
 (Being A’s share of profit up to date of death credited to his A/c )    
     

Working Notes :

Average annual profit

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Profit for last 3 years = 8,000 + 11,000 + 17,000 = Rs 36,000

Average annual profit = 36,000 / 3 = Rs 12,000

Profit up to 31st March=Rs. 12,000x3
12
     
 =Rs 3,000  
A’s share=Rs. 3,000x1
3
     
 =Rs 1,000  

Comment if you have any questions.
Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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