Solution of Q 27 Death of a Partner TS Grewal 2022-23 [CBSE]

X and Y are partners. The Partnership Deed provides inter alia:

1. (a) That the Accounts be balanced on 31st March every year.
2. (b) That the profits be divided as: X one-half, Y one-third and carried to a Reserve one-sixth.
3. (c) That in the event of the death of a partner, his Executors be entitled to be paid:
4. (i) The Capital to his credit till the date of death.
5. (ii) His proportion of profits till the date of death based on the average profits of the last three completed years.
6. (iii) By way of Goodwill, his proportion of the total profits for the three preceding years.
7. (d) Balance Sheet as at 31st March, 2022: (Balance Sheet total ₹21,000)