Furkan, Tanmay and Barkat were partners in a firm sharing profits in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. Tanmay died on 31st July, 2019. His executor was entitled to:
(i) His capital Rs. 8,00,000 and his share of goodwill which was valued for the firm at Rs. 96,000.
(ii) His share of profit as per partnership agreement, which was to be calculated on the basis of average profit of last 3 years. Average profits of the last 3 years were Rs. 78,000.
(iii) Tanmay’s executors were paid Rs. 95,000 by cheque at the time of his death and the balance was transferred to his executor’s loan account.
Pass the necessary journal entries in the books of the firm, on Tanmay’s death, for the above transactions.