Saurabh, Reena and Deepak were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. Saurabh died on $\displaystyle 318$ December, 2024. As per the partnership deed, Saurabh's share of profit or loss till the date of death was to be calculated on the basis of sales. Sales for the year ended 3lS March, $\displaystyle 2024$ amounted to ₹ $\displaystyle 10,00,000$ and that from 1st April, $\displaystyle 2024$ to 3lS December, $\displaystyle 2024$ amounted to ₹ $\displaystyle 7,50$,000. The profit for the year ending 31st= March, $\displaystyle 2024$ was calculated as ₹ $\displaystyle 5,00$,000. The books of accounts are closed on 3lS March every year. Calculate Saurabh's share in the profit of the firm till the date of his death. Pass necessary journal entry for the same. Show your working clearly.

Books of Saurabh, Reena and Deepak Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2024$ Dec.31 Profit and Loss Suspense A/c Dr. $\displaystyle 1,87,500$ To Saurabh’s Capital A/c $\displaystyle 1,87,500$ (Saurabh’s share of profit transferred to his capital account) Calculation of Firm’s profits till Saurabh’s death: If sale is ₹$\displaystyle 10,00,000$, the profit = ₹$\displaystyle 5,00,000$ If sale is ₹$\displaystyle 7,50,000$, the profit = ₹$\displaystyle 5,00,000$ x ₹$\displaystyle 7,50,000$ ₹$\displaystyle 10,00,000$ = ₹$\displaystyle 3,75,000$ Calculation of Saurabh’s share of profit till death = ₹$\displaystyle 3,75,000$ x $\displaystyle 5$/$\displaystyle 10$ = ₹$\displaystyle 1,87,500$