Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2: 2: 1. On 1st July, 2020 Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2019-20 Rs. 5,00,000 and that from 1st April to 30th June, 2020 were Rs. 1,40,000. Rate of profit during the past three years had been 10% on sales. Since Shreya’s legal representative was her only son, who is specially abled, it was decided that the profit for the purpose of settling Shreya’s account is to be calculated as 20% on sales. Calculate Shreya’s share of profits till the date of her death and pass necessary Journal entry for the same.(CBSE 2018 C, Modified)

Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2: 2: 1. On 1st July, 2020 Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2019-20 Rs. 5,00,000 and that from 1st April to 30th June, 2020 were Rs. 1,40,000. Rate of profit during the past three years had been 10% on sales. Since Shreya’s legal representative was her only son, who is specially abled, it was decided that the profit for the purpose of settling Shreya’s account is to be calculated as 20% on sales. Calculate Shreya’s share of profits till the date of her death and pass necessary Journal entry for the same.(CBSE 2018 C, Modified)

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