Meena, Beena and Neena were partners in a firm sharing profits & losses equally. Their balance sheet as on 31 March, 2022 was as follow:

Balance Sheet of Meena, Beena and Veena as on 31st March, 2022

Liabilities Amount
Assets Amount
Capitals: Plant and Machinery 2,40,000
Meena      1,50,000 Stock 60,000
Beena     1,00,000 Sundry Debtors 35,000
Veena      75,000 3,25,000 Cash at Bank 50,000
General Reserve 30,000
Sundry Creditors 30,000
3,85,000 3,85,000

Veena died on 30th June, 2022. According to the partnership deed, the executors of the deceased partner were entitled to:

(i) Balance in Capital account.

(ii) Salary till the date of death a ₹25,000 pa.

(iii) Share of Goodwill calculated on the basis of twice the average profits of past three years.

(iv) Share of profit on the closure of last accounting year till the date of death on the basis of average of three completed years’ profits before death.

(v) Profits for 2019-20, 2020-21 and 2021-22 were ₹1,20,000, ₹90,000 and ₹1,50,000 respectively.

Veena withdrew ₹l5,000 on 1st June, 2022 for paying her daughter’s school fees.

Prepare Veena’s capital account to be rendered to her executors.

Marks-4, CBSE:2022-23/Zone-2/Set-1/Q-22

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