B, C and D were partners in a firm sharing profits and losses in the ratio of 3: 5 :2. On 31.03.2022 their Balance Sheet was as follows:
Balance Sheet of B, C and D as at 31st March, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Creditors | 1,10,000 | Building | 2,00,000 |
| Reserve Fund | 60,000 | Machinery | 3,00,000 |
| Capitals: | Stock | 2,10,000 | |
| B 3,00,000 | Debtors | 80,000 | |
| C 2,50,000 | Bank | 80,000 | |
| D 1,50,000 | 7,00,000 | ||
| 8,70,000 | 8,70,000 |
C died on 01.10.2022. On C’s death, goodwill was valued at ₹1,87,500. The revaluation of assets and reassessment of liabilities resulted into a loss of ₹10,000. The partnership deed provided that on the death of a partner, goodwill will be treated without opening goodwill account. C’s share of profit till the date of his death was calculated at ₹70,000.
Prepare C’s Capital account to be presented to his executors at the time of his death and also C’s Executor’s account, assuming that half the amount due to him was paid immediately on C’s death.
Marks-4, CBSE:2022-23/Compartment/Q-22