Question

Zaina, Yash, and Kiran were partners in a firm sharing profits and losses in the ratio 2 : 2 : 1. Zaina died on 1st July, 2024. As per the partnership deed, Zaina’s share of profit or loss till the date of her death was to be calculated on the basis of sales.

Sales for the year ended 31st March, 2024, amounted to ₹ 4,00,000, and those from 15th April to 30th June, 2024, were ₹ 1,50,000. The profit for the year ending 31st March, 2024, was calculated as ₹ 1,00,000. The books of accounts are closed on 31st March every year.

Calculate Zaina’s share of profit in the firm till the date of her death and pass the necessary journal entry for the same.

Answer 1

Sales for the year ended 31st March, 2024 = 4,00,000

Profit for the year ended 31st March, 2024 = 1,00,000

Sales from 1st April, 2024 to 30th June, 2024 = 1,50,000

Rate of profit to Sales = `"Profit"/"Sales" xx 100`

= `(1,00,000)/(4,00,000) xx 100`

= 25%

Profit upto Zaina’s death (30th June, 2024) = `25/100 xx 1,50,000`

= ₹ 37,500

Zaina’s share of profit = `37,500 xx 2/5`

₹ 15,000

Journal Entry
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2024 June 30	Profit and Loss Suspense A/c   ...Dr.		15,000	−
	To Zaina’s Current A/c		−	15,000
	(Being Zaina’s share of profit till the date of death credited to her capital accounts.