Pankaj, Rajat and Samay were partners in a firm sharing profits and losses in the ratio of 7 : 2 : 1. Their Balance Sheet as at 31st March, 2023 was as follows:
Balance Sheet of Pankaj, Rajat and Samay as at 31st March, 2023
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|---|---|---|---|
| Capitals : | Machinery | 2,10,000 | |
| Pankaj 3,00,000 | Furniture | 1,00,000 | |
| Rajat 2,00,000 | Stock | 1,50,000 | |
| Samay 1,00,000 | 6,00,000 | Debtors | 1,60,000 |
| General Reserve | 1,00,000 | Bank | 2,50,000 |
| Creditors | 1,70,000 | ||
| 8,70,000 | 8,70,000 |
Rajat died on 30th June, 2023. It was agreed between his executors and remaining partners that:
(i) Goodwill be valued at two years purchase of average profits of the previous four years which were ₹ 5,00,000.
(ii) Share of profit up to the date of death will be on the calculated on the basis of average profits of the past four years. Rajat’s share of profit amounted to ₹25,000.
(iii) Interest on capital is to be provided @ 10% p.a.
(iv) Half the amount due to Rajat is to be paid immediately.
Prepare Rajat’s Capital Account and Rajat’s Executor’s Account as on 30th June, 2023.
Marks-6, CBSE: 2023-24/Compartment/Set-1/Q-23
Answer :
