Azhar, Sumit and Robit were partners in a firm sharing profits and losses in the ratio of 3:1:1. Their Balance Sheet as at 31st March, 2023, was as follows:
Balance Sheet of Azhar, Sumit and Robit as at 31st March, 2023
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | |
|---|---|---|---|---|
| Creditors General Reserve Capitals: Azhar Sumit Robit |
60,000 40,000 20,000 |
90,000 60,000 1,20,000 |
Bank Stock Debtors Fixed Assets |
20,000 40,000 1,50,000 60,000 |
| Total | 2,70,000 | Total | 2,70,000 | |
Robit died on 30th June, 2023. According to the Partnership deed, Robit’s legal representatives were entitled to:
(i) Balance in his Capital Account.
(ii) His share of General Reserve.
(iii) Interest on capital @ 10% p.a.
(iv) His share of goodwill. Goodwill of the firm was valued on the basis of thrice the average of the past four years’ profits.
(v) His share in profits up to the date of death on the basis of the profit for the last year.
Profit for the previous years were:
| Rs. | |
|---|---|
| 2019 20 | (3,000) |
| 2020 21 | 28,000 |
| 2021 22 | 16,000 |
| 2022 23 | 15,000 |
Prepare Robit’s Capital Account to be rendered to his legal representatives.
Marks-6, CBSE: 2023-24/Zone-1/Set-1/Q-23
Answer :
