Karim, Saleem and Raheem were partners in a firm sharing profits and
losses in the ratio of 3 : 4 : 3. The firm closes its books on 31st March every
year. On 1-10-2019 Karim died. On Karim’s death the goodwill of the firm
was valued at ` 3,50,000. Karim’s share in the profits of the firm in the
year of his death was to be calculated on the basis of average profits of
last four years. The profits for the last four years were 2015-16 ` 1,70,000;
2016-17 ` 1,30,000; 2017-18 ` 1,90,000 and 2018-19 ` 1,10,000. The total
amount payable to Karim’s executors on his death was ` 7,35,000. It was
paid on 15-10-2019.
Pass necessary journal entries for the above transactions in the books of
the firm.
