P, R and S are partners sharing profit and losses in the ratio 4:3:1 respectively It is provided in - Accountancy - Reconstitution- Retirement/Death of a Partner

Question

P, R and S are partners sharing profit and losses in the ratio
4:3:1 respectively It is provided in the partnership deed that on
the death of any partner, her share of goodwill was to be valued at
half of the profit credited to her account during the four
completed years
R died on 1 April 2012 The firm profit/losses for the last
four
years ended 31 March 2009-120000
2010-60000
2011-20000 (loss)
2012-80000
Determine the amount that should be credited in respect to R of
her share of goodwill The new profit sharing ratio between p s in
future will be 3:2

Sagar Gupta · Accepted Answer

Total profits of last four years =1,20,000 + 60,000 - 20,000
+80,000
= 2,40,000
Share of R in profits = 3/8 x
2,40,000
= 90,000
Share in Goodwill of R = 1/2 of
90,000
= 45,000