Sandeep, Maheep and Amandeep were partners in a firm sharing profits in the ratio of 2: 2: 1. The firm closes its books on 31st March every year. On 30th June, 2020 Maheep died. The partnership deed provided that on the death of a partner his executors will be entitled to the following:

a) Balance in his capital account which amounted to ₹1,15,000 and interest on capital till date of death which amounted to ₹5,000.

b) His share in the profits of the firm till the date of his death amounted to ₹20,000.

c) His share in the goodwill of the firm. The goodwill of the firm on Maheep’s death was valued at ₹1,50,000.

d) Loan to Maheep amounted ₹20,000. It was agreed that the amount will be paid to his executor in three equal yearly instalments with interest @10% p.a. The first instalment was to be paid on 30.06.2021.

Calculate the amount to be transferred to Maheep’s executors Account and prepare the executor’s account till it is finally settled.

Marks-6, CBSE:2023-24/Sample/Q-25

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