Vikas, Vishal and Vaibhav were partners in a firm sharing profits in the ratio of 2:2:1. The firm closes its books 31st March every year. On 31-12-2015 Vaibhav died. On that date his Capital account showed a credit balance of ₹ 3,80,000 and Goodwill of the firm was valued at  ₹ 1,20,000. There was a debit balance of ₹ 50,000 in the profit and loss account. Vaibhav's share of profit in the year of his death was to be calculated on the basis of the average profit of last five years. The average profit of last five years was ₹ 75,000. Pass necessary journal entries in the books of the firm on Vaibhav's death.

Working Notes:
WN(1): Calculation of Vaibhav’s Share of Goodwill
Vaibhav's Share of Goodwill = Firm's Goodwill His Profit Share

24,000 will be borne by gaining partners in gaining ratio.
Since, nothing is specified; it is assumed that continuing partners gain in their old profit sharing ratio of 2:2

WN2: Calculation of Share of Debit balance in P&L A/c

WN3: Calculation of Share in Profit (earned during the year)

WN 4: Calculation of Amount transferred to Vaibhav's Executor A/c
Amount due to Vaibhav = Capital + Credit Items - Debit Items
=3,80,000 + 24,000 - 10,000 + 11,250=4,05,250