Harpal, Ranjit and Manjit were partners sharing profits and losses in the ratio of 4 : 3 : 1
Harpal, Ranjit and Manjit were partners sharing profits and losses in the ratio of 4 : 3 : 1. They close their books of account every year on 31st March. Ranjit died on 30th September, 2022. The firm’s profits for the previous years ended 31st March, were:
| Year | Profit (₹) |
| 2017-18 | 3,50,000 |
| 2018-19 | 3,00,000 |
| 2019-20 | 1,10,000 |
| 2020-21 | 90,000 (Loss) |
| 2021-22 | 1,60,000 |
Harpal and Manjit decided to share future profits in the ratio of 3 : 2.
Goodwill is to be valued on the basis of 2 year’s purchase of average profit of 4 completed years preceding the year of death of a partner.
Pass Journal entry to record Ranjit’s share of Goodwill.
Anurag Pathak Changed status to publish February 12, 2024
