The Balance Sheet of A, B and C who were sharing profits in the ratio of 3 : 3 : 4 as at 31st March, 2019 was as follows :

Balance Sheet of A, B and C as at 31st March, 2019

Liabilities Amount ₹ Assets Amount ₹
General Reserve 40,000 Cash 4,000
Bills Payable 15,000 Stock 43,000
Loan from Bank 30,000 Investments 70,000
Capitals : Land and Buildings 1,58,000
A 60,000
B 90,000
C 40,000 1,90,000
2,75,000 2,75,000

A died on 1st October, 2019. The partnership deed provided for the following on the death of a partner:

(i) Goodwill of the firm be valued at two years’ purchase of average profits for the last three years.

(ii) The profit for the year ending 31st March, 2019 was ₹50,000.

(iii) Interest on capital was to be provided @ 6% p.a.

(iv) The average profits of the last three years were ₹35,000.

Prepare A’s Capital Account to be rendered to his executors.

Marks-4, CBSE:2019-20/Compartment/Q-17

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