Naveen, Kavita and Vishesh were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. Their Balance Sheet as at 31st March, 2019 was as follows:
Balance Sheet of Naveen, Kavita and Vishesh as at 31st March, 2019
Plant and Machinery
Profits for the year 2018 – 19
Naveen died on 30th June, 2019. According to the partnership deed, in addition to the deceased partner’s capital, the executors are entitled to
(i) His share in profits on the basis of average profits of the last two years. The profit for the year 2017 – 18 was Rs. 50,000.
(ii) His share in the goodwill of the firm. Goodwill was to be calculated on the basis of two years’ purchase of the average profits of the last two years.
Naveen withdrew Rs. 60,000 on 1st June, 2019.
Prepare Naveen’s Capital Account which is to be rendered to his executor.