Ramesh, Rajesh and Raman are partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : 1. On 30th June, $\displaystyle 2021$, Ramesh died. Sales for the year ended 31st March, $\displaystyle 2021$ were ₹ $\displaystyle 12,00,000$ and profits were ₹ $\displaystyle 1,20$,000. The sales for the period from 1st April, $\displaystyle 2021$ to 30th June, $\displaystyle 2021$ amounted to ₹ $\displaystyle 4,00$,000. Accounts are closed on 31st March every year. Calculate Ramesh's share of profit till the date of his death and pass the necessary journal entry for the same in the books of the firm.

Sales for $\displaystyle 2020$–$\displaystyle 21$ ₹ $\displaystyle 12,00,000$ Profit for $\displaystyle 2020$-$\displaystyle 21$ ₹ $\displaystyle 1,20,000$ Sales for $\displaystyle 3$ months = ₹ $\displaystyle 4,00,000$ Profit for $\displaystyle 3$ months = $\displaystyle 4,00,000$/$\displaystyle 12,00,000$ x1,$\displaystyle 20,000$ = ₹ $\displaystyle 40,000$ Or Rate of profit = $\displaystyle 1,20,000$ /$\displaystyle 12,00,000$ x100 =$\displaystyle 10$% Profit for $\displaystyle 3$ months =$\displaystyle 10$% of $\displaystyle 4,00,000$ = ₹$\displaystyle 40,000$ $\displaystyle 2$ Ramesh’s share of profit = × ₹ $\displaystyle 40,000$ $\displaystyle 5$ = ₹ $\displaystyle 16,000$ Journal L Debit Credit Date Particulars . Amount Amount F (₹) (₹) $\displaystyle 2021$ Profit & Loss Suspense A/c $\displaystyle 16,000$ June To Ramesh’s capital A/c $\displaystyle 16,000$ $\displaystyle 30$ (Ramesh’s share of profit till date of his death transferred to his capital A/c)