Sudhir, Deepak and Naveen were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2022 their Balance Sheet was as under:
Balance Sheet of Sudhir, Deepak and Naveen as at 31st March, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Sundry Creditors | 50,000 | Land and Building | 2,10,000 |
| General Reserve | 1,00,000 | Machinery | 1,90,000 |
| Loan | 1,20,000 | Stock | 30,000 |
| Capitals: | Investments | 1,70,000 | |
| Sudhir 1,60,000 | Advertisement Suspense A/c | 1,20,000 | |
| Deepak 1,50,000 | |||
| Naveen 1,40,000 | 4,50,000 | ||
| 7,20,000 | 7,20,000 |
Sudhir died on 30th June, 2022. The partnership deed provided for the following, on the death of a partner:
(i) Goodwill of the firm was to be valued at 2½ years purchase of average profits of the previous four years which were ₹1,80,000.
(ii) Sudhir’s share of profit or loss till the date of death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2022 amounted to ₹4,00,000 and that from 1st April, 2022 to 30th June, 2022 amounted ₹1,50,000. The profit for the year ended 31st March, 2022 was ₹1,00,000.
(iii) Interest on capital was to be provided @ 7% p.a.
Prepare Sudhir’s capital account to be rendered to his executors.
Marks-4, CBSE:2022-23/Zone-1/Set-1/Q-22