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2020-2021)0y at 1:29 PMSita, Reeta and Geeta are partners in a firm sharing profits and losses in the ratio of 4 :3 :1.As perthe terms of Partnership Deed on the death of any partner, her share of Goodwill wasto be valued at 50% of the net profits credited to that Partner's Capital Account during thelast three completed years before her death. Sita died on 29th February, 2012. The profits forthe last five years were: 2007—360,000; 2008–397,000; 2009–31,05,000; 2010–30,000 and2011 - 84,000.On the date of Sita's death, Building was found undervalued by 80,000, which was to beconsidered. Calculate amount of Sita's share of Goodwill in the firm and record the adjustmentJournal entries of Goodwill and revaluation of Building. The new profit-sharing ratio betweenReeta and Geeta will be equal.(Delhi 2012 C, Modified)SolutionHW 1 |
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