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Danish, Ana and Pranjal are partners in a firm sharing profits and losses in the ratio of 5:3:2. Their books areclosedon March31stevery year.Danish died on September 30th, 2019, The executors of Danish are entitled to:-
i.His share of Capital i.e. ? 5,00,000 along-with his share of goodwill. The total goodwill of the firm was valued at ? 60,000.
ii.His share of profit up to his dateof death on the basis ofsales till date of death. Sales for the year ended March 31, 2019 was? 2,00,000 and profit for the same year was 10% on sales. Sales shows a growth trend of 20% and percentage of profit earning is reduced by 1%.
iii.Amount payable to Danish was transferred to his executors.Pass necessary Journal Entries and show the workings clearly.
By: Kamal Kashyap ProfileResourcesReport error
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