Question

A, B and C are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their books are closed on March 31st every year. B died on September 30th, 2023 and A and C decided to share future profits in 3 : 2. The executors of B are entitled to: His share of Capital i.e., ₹ 25,00,000 along-with his share of goodwill. The total goodwill of the firm was valued at ₹ 1,20,000. His share of profit up to his date of death on the basis of sales till date of death. Sales for the year ended March 31, 2023 was ₹ 3,00,000, and profit for the same year was 10% on sales. Sales show a growth trend of 20% and percentage of profit earning is reduced by 1%.

You are required to give answer to the following question:

Choose the odd one:

विकल्प

• Revaluation Account

• Gaining Ratio

• Realisation of Assets

• Adjustment of Goodwill

Answer 1

Realisation of Assets