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
Plant and Machinery
Profit for the year 2017-18
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.