Reconstitution of Partnership (Death of Partner) Partners were sharing profits \& losses in the ratio \( 1: 2: 1 . \) Gautam died on July 1, \( 2012 . \) 1) Goodwill to be raised by Rs. 20,000, but only Gautam's share to be raised. 2) Share in Profits to be calculated by taking into account last 2 years' profits which were Rs. 30,000 and Rs. \( 40,000 . \) 3) RDD to be maintained at \( 10 \% \) of debtors. 4) Land \& Building and Machinery were to be appreciated by \( 10 \% \) and \( 15 \% \) respectively. 5) Stock of Rs. 2,000 to be written off. 6) Gautam had made drawings of Rs. 5,000 till date of death.

Question

Reconstitution of Partnership (Death of Partner) Partners were sharing profits \& losses in the ratio \( 1: 2: 1 . \) Gautam died on July 1, \( 2012 . \) 1) Goodwill to be raised by Rs. 20,000, but only Gautam's share to be raised. 2) Share in Profits to be calculated by taking into account last 2 years' profits which were Rs. 30,000 and Rs. \( 40,000 . \) 3) RDD to be maintained at \( 10 \% \) of debtors. 4) Land \& Building and Machinery were to be appreciated by \( 10 \% \) and \( 15 \% \) respectively. 5) Stock of Rs. 2,000 to be written off. 6) Gautam had made drawings of Rs. 5,000 till date of death.