Target Exam

CUET

Subject

Accountancy Part A

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B and C were partners in a firm sharing profits in the ratio of 5:3:2. On March 31, 2025 the balance sheet of the firm shows the capital balance of Rs 30,000, Rs 25,000, and Rs 15,000 respectively with an accumulated losses of Rs 30,000. A died on October 1, 2025. It was agreed between his executors and the remaining partners that the profit for the year 2025-26 be taken as having accrued at the same rate as that of the previous year. Goodwill to be valued at 2.5 year’s purchase of the average profits of the previous four years which were :

Year 2021-22 – Rs. 13,000

Year 2022-23 – Rs. 12,000

Year 2023-24 – Rs. 20,000

Year 2024-25 – Rs. 15,000

Calculate the amount due to A’s executor based on the above information.

Options:

Rs 67,500

Rs 52,500

Rs 22,500

Rs 37,500

Correct Answer:

Rs 37,500

Explanation:

The correct answer is Option (4) → 

Rs 37,500