Sonali, Sohan and Shivain were partners in a pen manufacturing firm.

They were sharing profits and losses in the ratio of 2 : 2: 1. On 31st March, 2022 their Balance Sheet was as follows:

Balance Sheet of Sonali, Sohan and Shivain as on 31st March, 2022

Liabilities Amount
Assets Amount
Capitals: Land and Buildings 6,00,000
Sonali 4,00,000 Plant and Machinery 5,00,000
Sohan 4,00,000 Debtors 1,60,000
Shivain 4,00,000 12,00,000 Stock 1,40,000
General Reserve 1,00,000 Cash in hand 1,20,000
Creditors 3,60,000 Cash at Bank 1,80,000
Bills Payable 40,000
17,00,000 17,00,000

Sohan died on 30h June, 2022. According to Partnership Deed, his executors were entitled to:

  • Interest on capital @ 12% p.a.
  • His share of goodwill which was ₹48,000
  • His share of profit till the date of death was to be calculated on the basis of sales. The sales from 1st April, 2022 to 30th June, 2022 were ₹2,50,000. The sales and profits of the firm for the year ending 31st March, 2022 were ₹20,00,000 and ₹5,00,000 respectively.

Prepare Sohan’s Capital Account to be presented to his executors.

Marks-4, CBSE:2022-23/Zone-5/Set-1/Q-22

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