Keith, Bina and Veena were partners in a firm sharing profits and losses equally. Their balance sheet as on 31-3-2019 was as follows:
Balance Sheet of Keith, Bina and Veena as on 31-3-2019
|
Liabilities |
Amount (Rs.) |
Assets |
Amount (Rs.) |
|
Capitals : |
|
Plant and Machinery |
2,40,000 |
|
Keith 1,50,000 |
|
Stock |
60,000 |
|
Bina 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, 2019. According to the partnership deed, the executors of the deceased partner were entitled to :
(a) Balance in capital account
(b) Salary till the date of death @ Rs. 25,000 per annum.
(c) Share of goodwill calculated on the basis of twice the average profits of past three years.
(d) Share of profit from the closure of the last accounting year till the date of death on the basis of average of three completed years profits before death.
(e) Profits for 2016-17, 2017-18 and 2018-19 were Rs. 1,20,000, Rs. 90,000 and Rs. 1,50,000 respectively.
Veena withdrew Rs. 15,000 on 1st June, 2019 for paying her daughter’s school fees.
Prepare Veena’s capital account to be rendered to her executors.
Marks-4, CBSE:2019-20/Main/05/Q-17