Aditi, Kartik and Tina were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2019, their Balance Sheet was as follows :
Balance Sheet of Aditi, Kartik and Tina as at 31st March, 2019
Aditi died on 1st November, 2019. It was agreed that :
(i) Goodwill of the firm be valued at Rs. 1,00,000.
(ii) Profit for the year 2019 ~ 20 be taken as having accrued at the same rate as the previous year 2018 ~ 19. Profit for the year 2018 ~ 19 was Rs. 96,000.
(iii) Half the amount was paid to Aditi’s executors immediately and the remaining half will be paid in two equal annual instalments with interest @ 6% p.a.
Pass the necessary journal entries to record the above transactions in the books of the firm on the date of her death.