Trisha, Anisha and Rishika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follows:
Balance Sheet of Trisha, Anisha and Rishika as at 31st March, 2022
|Capitals:||Plant and Machinery||5,00,000|
|Rishika 1,00,000||6,00,000||Cash at Bank||40,000|
Trisha died on 31st July, 2022. According to the partnership deed, the executors of the deceased partner were entitled to:
- Balance in partners’ Capital Accounts
- Salary @ ₹15,000 per quarter.
- Share of goodwill calculated on the basis of twice the average of past three years’ profits
- Share of profits from the closure of the last accounting year till the date of death on the basis of last year’s profit. Profit for 2019-20, 2020-21 and 2021-22 were ₹1,00,000, ₹2,00,000 and ₹1,50,000 respectively.
- Trisha withdrew ₹20,000 on 1st May, 2022 for her personal use.
Showing your working clearly, prepare Trisha’s Capital Account to be rendered to her executors.