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.