Shirish, Harit and Asha were partners in a firm sharing profits in the ratio of 5 : 4 : 1. Shirish died on 30th June, 2018. On this date their Balance Sheet was as follows : 

Balance Sheet of Shirish, Harit and Asha as at 31st March, 2018 

Liabilities 

Amount (Rs.) 

Assets 

Amount (Rs.) 

Capital: 

 

Plant and Machinery 

5,60,000 

Shirish     1,00,000 

 

Stock 

90,000 

Harit        2,00,000 

 

Debtors 

10,000 

Asha        3,00,000 

6,00,000 

Cash 

40,000 

Profit for the year 2017-18 

80,000 

 

 

Bills Payable 

20,000 

 

 

 

7,00,000 

 

7,00,000 

 

According to the partnership deed, in addition to deceased partner’s capital, his executor is entitled to: 

(i) Share in profits in the year of death on the basis of average of last two years’ profit. Profit for the year 2016 – 17 was Rs.  60,000. 

(ii) Goodwill of the firm was to be valued at 2 years’ purchase of average of last two years’ profits. 

Prepare Shirish’s Capital Account to be presented to his executor. 

Marks-4, CBSE:2018-19/Main/03/Q-12 

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