Riva, Siya and Diya were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 2$ : 1. Riya died on $\displaystyle 1$" July, 2021. Riya's share of profit till the time of her death was to be calculated on the basis of average profits of past $\displaystyle 5$ years. The Profits of the firm for the last five years were : Q $\displaystyle 201617$ $\displaystyle 60,000$ $\displaystyle 201718$ $\displaystyle 50,000$ $\displaystyle 201819$ $\displaystyle 90,000$ $\displaystyle 201920$ $\displaystyle 80,000$ $\displaystyle 202021$ $\displaystyle 1,20,000$ Calculate Rivas share of profit till the time of her death and pass necessary journal entry for the same.

Calculation of Riya’s share of Profit Average profit = (₹ $\displaystyle 60,000$ + ₹$\displaystyle 50,000$ + ₹$\displaystyle 90,000$ + ₹$\displaystyle 80,000$ + ₹$\displaystyle 1,20,000$) / $\displaystyle 5$ = ₹ $\displaystyle 4,00,000$/$\displaystyle 5$ = ₹$\displaystyle 80,000$ Profit for $\displaystyle 3$ months =₹ $\displaystyle 80,000$ x $\displaystyle 3$/$\displaystyle 12$ = ₹ $\displaystyle 20,000$ Riya’s share =₹ $\displaystyle 20,000$ x $\displaystyle 3$/$\displaystyle 6$ = ₹$\displaystyle 10,000$ Journal Date Particulars L.F. Debit Credit Amount Amount (₹) (₹) P & L Suspense A/c Dr. $\displaystyle 10,000$ To Riya’s Capital A/c $\displaystyle 10,000$ (Riya’s share of estimated profits till date of his death credited to her capital account)