CBSE 2026 · Region 1 · Set 1 · Q22

Kiran, Raveena and Hina were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. The firm closes its books on 31st March every year. As per the terms of the partnership deed, on the death of any partner, the goodwill of the firm will be calculated on the basis of four times the average profits of the last three years. Hina died on 1st July 2025. The Profits for the last three years were : $\displaystyle 2022$-$\displaystyle 23$ ₹ $\displaystyle 4$,'$\displaystyle 75,000$ $\displaystyle 2023$-$\displaystyle 24$ ₹ $\displaystyle 4,05,000$ $\displaystyle 2024$-$\displaystyle 25$ ₹ $\displaystyle 3,20,000$ Hina's share of profit upto the date of death was to be calculated on the basis of previous year's profit. (i) Calculate goodwill of the firm and I-Iina's share of goodwill. (ii) Calculate Hina's share in the profits of the firm till the date of her death. (iii) Pass necessary journal entries for the treatment of goodwill without opening goodwill account and for Hina's share of profit at the time of her death.