CBSE 2022 · Region 5 · Set 2 · Q4

Ram, Mohan and Sohan were partners in a firm sharing profits and losses in the ratio of $\displaystyle 1$ :$\displaystyle 2$:2. The firm closes its books on 31st March every year. Sohan died on 1st September, 2021. On Sohan's death, the goodwill of the firm was valued at ₹ $\displaystyle 6,00$,000. The partnership deed provided that the share of profit of the deceased partner in the year of his death will be calculated on the basis of last year's profit. The profit for the year ended $\displaystyle 3$ l .3.2021 was $\displaystyle 3,00$,000. (i) Calculate Sohan's share in the profits till the date of his death. (ii) Pass necessary journal entries for the treatment of goodwill without opening goodwill account and Sohan's share of profit at the time of his death.