Aditi, Renu and Varsha were partners in a firm sharing profits and losses in the ratio of 3:2:5. On
31st March, 2023 their Balance Sheet was as under:
Balance Sheet of Aditi, Renu and Varsha as at 31st March, 2023
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | ||
|---|---|---|---|---|---|
| Capitals: Aditi Renu Varsha General Reserve Creditors |
5,00,000 4,00,000 3,00,000 |
12,00,000 1,00,000 2,00,000 |
Building Machinery Stock Patents Debtors Cash |
6,00,000 3,00,000 1,00,000 1,50,000 2,50,000 1,00,000 |
|
| Total | 15,00,000 | Total | 15,00,000 | ||
Varsha died on 31st July, 2023. The partnership deed provided for the following, on the death of a partner:
(i) Interest on capital was to be provided @ 6% p.a.
(ii) Goodwill of the firm was to be valued at 3 years purchase of average profits of the previous five years which were Rs. 90,000.
(iii) Varsha’s share of profit or loss till the death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2023 amounted to Rs. 60,00,000 and that from 1st April, 2023 to 31st July, 2023 amounted to Rs. 15,00,000. The profit for the year ended 31st March, 2023 was Rs. 12,00,000.
Prepare Varsha’s Capital Account to be rendered to her executors.
Marks-4, CBSE: 2023-24/Zone-2/Set-1/Q-21
Answer :
