B, C and D were partners in a firm sharing profits and losses in the ratio of 3: 5 :2. On 31.03.2022 their Balance Sheet was as follows:
Balance Sheet of B, C and D as at 31st March, 2022

Liabilities Amount
Assets Amount
Creditors 1,10,000 Building 2,00,000
Reserve Fund 60,000 Machinery 3,00,000
Capitals: Stock 2,10,000
B       3,00,000 Debtors 80,000
C       2,50,000 Bank 80,000
D       1,50,000 7,00,000
8,70,000 8,70,000

C died on 01.10.2022. On C’s death, goodwill was valued at 1,87,500. The revaluation of assets and reassessment of liabilities resulted into a loss of 10,000. The partnership deed provided that on the death of a partner, goodwill will be treated without opening goodwill account. C’s share of profit till the date of his death was calculated at 70,000.

Prepare C’s Capital account to be presented to his executors at the time of his death and also C’s Executor’s account, assuming that half the amount due to him was paid immediately on C’s death.

Marks-4, CBSE:2022-23/Compartment/Q-22

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