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 :Â
Balance Sheet of Shirish, Harit and Asha as at 31st March, 2018Â
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 2017-18Â | 80,000Â | Â | Â |
Bills Payable | 20,000 |  |  |
 | 7,00,000 |  | 7,00,000 |
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According to the partnership deed, in addition to deceased partner’s capital, his executor is entitled to:Â
(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.Â
(ii) Goodwill of the firm was to be valued at 2 years’ purchase of average of last two years’ profits.Â
Prepare Shirish’s Capital Account to be presented to his executor.Â
Marks-4, CBSE:2018-19/Main/03/Q-12Â
