Accountancy > Accounting For Partnership Firms > Retirement And Death Of A Partner
Azhar, Sumit and Robit were partners in a firm sharing profits and losses in the ratio of 3:1:1. Robit died on 30th June, 2023. According to the Partnership deed, Robit's legal representatives were entitled to :
(i) Balance in his Capital Account (20,000)
(ii) His share of General Reserve (40,000 total)
(iii) Interest on capital @ 10% p.a.
(iv) His share of goodwill. Goodwill of the firm was valued on the basis of thrice the average of the past four years' profits.
(v) His share in profits up to the date of death on the basis of the profit for the last year.
Profit for the previous years: 2019-20: (3,000); 2020-21: 28,000; 2021-22: 16,000; 2022-23: 15,000.
Prepare Robit's Capital Account to be rendered to his legal representatives.
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