5 A, B and C are partners in a firm whose books are closed on March 3 Ist each year. A died-on 30th June 2018 and according to the agreement the share of profits of a deceased partner up to the date of the death is to be calculated on the basis of the average profits for the last five years. The net profits for the last 5 years have been: 2014 Rs. \( 14,000: 2015 \) Rs. \( 18,000: 2016 \) Rs. 16,\( 000 ; 2017 \) Rs. 10,000 (loss) and 2018 Rs. 16,000 . Calculate A's share of the profits up to the date of death and pass necessary journal entry assuming: (a) there is no change in the profit-sharing ratio of remaining partners: (b) There is change in the profit-sharing ratio of remaining partners, new ratio being 3: 2 .

Question

5 A, B and C are partners in a firm whose books are closed on March 3 Ist each year. A died-on 30th June 2018 and according to the agreement the share of profits of a deceased partner up to the date of the death is to be calculated on the basis of the average profits for the last five years. The net profits for the last 5 years have been: 2014 Rs. \( 14,000: 2015 \) Rs. \( 18,000: 2016 \) Rs. 16,\( 000 ; 2017 \) Rs. 10,000 (loss) and 2018 Rs. 16,000 . Calculate A's share of the profits up to the date of death and pass necessary journal entry assuming: (a) there is no change in the profit-sharing ratio of remaining partners: (b) There is change in the profit-sharing ratio of remaining partners, new ratio being 3: 2 .