[ISC] Q. 14 Solution of Death of Partner TS Grewal ISC 2023-24 Edition

Brown and Black are partners. The Partnership Deed provided inter alia as follows:

1. (i) That the accounts be balanced on 31st March every year.
2. (ii) That the profit be divided as: Brown one-half, Black one-third and one-sixth carried to the Reserve Account.

That in the event of death of a partner, his Executors will be entitled to be paid out:

1. (a) The Capital to his credit till the date of death.
2. (b) His proportion of Reserve till the date of the last Balance Sheet.
3. (c) His proportion of profits till the date of death based on the average profits of the last three completed years.
4. (d) His share of goodwill based on three years’ purchase of the average profits for the three preceding completed years.

On 31st March, 2023, the Ledger Balances were: (Total ₹ 2,10,000)