Accountancy > Accounting For Partnership Firms > Retirement And Death Of A Partner

Adayant, Shifa and Rohan were partners in a firm sharing profits and losses in the ratio of 2: 1: 2. Their Balance Sheet as at $31^{st}$ March, 2024 stood as follows:

Shifa died on $30^{th}$ June, 2024. As per the partnership deed, the executors of Shifa were entitled to: (i) Amount standing to the credit of her capital account. (ii) Interest on capital which was ₹5,750. (iii) Her share of goodwill which was ₹42,000. (iv) Her share in the profits of the firm from the date of the last Balance Sheet up to the date of death which amounted to ₹76,250. Shifa's executors were paid half of the payable amount immediately and the balance amount was to be paid in two equal yearly instalments along with interest 8% p.a. Pass necessary journal entries for the above transactions on Shifa's death.