Question

Tripti, Atishay and Radhika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31-3-2024 was as follows:

Balance sheet of Tripti, Atishay and Radhika as at 31st March, 2024
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capitals:			Plant and Machinery	2,00,000
Tripti	3,00,000		Stock	3,10,000
Atishay	2,00,000		Sundry Debtors	60,000
Radhika	1,00,000	6,00,000	Cash at Bank	40,000
Profit for the Year 2023-24		2,00,000
General Reserve		50,000
Creditors		60,000
		9,10,000		9,10,000

Tripti died on 30th June, 2024. According to the partnership deed, the executors of the deceased partner are entitled to:

1. Balance in partner’s capital account.
2. Salary @ ₹ 12,500 per quarter.
3. Share of goodwill calculated on the basis of twice the average of past three year’s profits and share of profits from the closure of the last accounting year till the date of death on the basis of last year’s profit. Profits for 2021-22 and 2022-23 were ₹ 1,00,000 and ₹ 1,50,000 respectively.
4. Tripti withdrew ₹ 20 000 on 1st May, 2024 for her personal use.

Prepare Tripti’s Capital Account to be rendered to her executors.

Answer 1

Dr.	Tripti’s Capital A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Drawings A/c	20,000	By balance b/d	3,00,000
To Tripti’s Executor’s A/c	5,32,500	By General Reserve A/c	20,000
		By Profit & Loss A/c	80,000
		By Salary A/c	12,500
		By Atishay’s Capital A/c	80,000
		By Radhika’s Capital A/c	40,000
		By Profit & Loss Suspense A/c	20,000
	5,52,500		5,52,500

Working notes:

1. Old ratio of Tripti, Atishay & Radhika = 2 : 2 : 1

Tripti died,

New ratio of Atishay & Radhika = 2 : 1

Gaining ratio = New ratio (i.e., 2 : 1)

2. Average Profit = `(1,00,000+1,50,000+2,00,000)/3`

= `(4,50,000)/3`

= ₹ 1,50,000

Goodwill = 1,50,000 × 2

= ₹ 3,00,000

Tripti’s share of Goodwill = `3,00,000xx2/5`

= ₹ 1,20,000

3. 3 Months (i.e., from 1st April 2019 to 30th June 2019)

Tripti’s share of Profit = `2,00,000xx3/12xx2/5`

= ₹ 20,000