Prakash, Aakash and Vikas were partners in a business sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follows:
Balance Sheet of Prakash, Aakash and Vikas as at 31st March, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Creditors | 2,00,000 | Bank | 40,000 |
| General Reserve | 1,00,000 | Stock | 60,000 |
| Capitals: | Debtors | 1,60,000 | |
| Prakash 1,20,000 | Investments | 1,40,000 | |
| Aakash 2,00,000 | Furniture | 70,000 | |
| Vikas 80,000 | 4,00,000 | Building | 2,30,000 |
| 7,00,000 | 7,00,000 |
Vikas died on 30th September, 2022. On the death of a partner the partnership deed provided for the following:
(i) Deceased partner will be entitled to his share of profit up to the date of death calculated on the basis of previous year’s profit
(ii) His share in the Goodwill of the firm, calculated on the basis of 3 years purchase of average profits of last four years. Profits for last four years ended 31st March were as follows: 2018-19, ₹1,60,000; 2019-20, ₹1,00,000; 2020-21, ₹80,000 and 2021-22, ₹60,000.
(iii) Drawings of the deceased partner up to the date of death were ₹20,000.
(iv) Interest on capital was allowed @ 12% per annum.
Prepare Vikas’s Capital Account to be rendered to his executors.
Marks-4, CBSE:2022-23/Zone-4/Set-1/Q-21