Question 53 Chapter 6 of +2- Part

Question 53 Chapter 6 of +2-Part-1

53. (Amount Payable to deceased Partner’s Legal Representative) A , B and Care partners in a firm their balance sheet as at 31 December, 2017 is given below:

Liabilities Rs.Assets Rs. 
Creditors 10,000Plant & Machinery 20,000
General reserve 10,000Furniture & Fixtures 2,500
A’s capital 20,000Stock10,500
B’s capital15,000Debtors15,000
C’s capital 5,000Investments 12,000
 60,000 60,000

B died on 30 June, 2018. The Partnership Deed provides that the representatives of the deceased partner shall be entitled to :
(i) Deceased partner’s capital as appearing in last Balance sheet.
(ii) Interest on capital @ 6% pa up to the date of death.
(ii) His share of profit up to the date of death on the average of last three year’s profit.
(iv) His share of any undistributed profits and losses as per last balance sheet.
(v) Interest on his drawings up to the date of death will be charged 10% pa Profits for the last three years were Rs. 65,000, Rs. 64.000 and Rs. 69,000.
B’s drawings up to the date of death amounting to Rs. 10,000, Ascertain the amount payable to the legal representative of B (goodwill excluded)

The solution of Question 53 Chapter 6 of +2 Part-1: –

Calculation of the amount payable to the legal representative of B
Particulars
Amount
Capital as per last balance sheet 15,000
Interest on capital for 6 months @ 6 % p.a. 4,000
Share of profit for 6 months  
Average profit (1/3) X (65000+64000+69000)= Rs. 66,000  
Profit for 6 months = (1/2) X Rs. 66,000 = Rs.33,000  
B’s share = (1/3) X Rs. 33,000 11,000
Share of General Reserve = (1/3) X Rs. 10,000 3,333
  29,783
Less drawings10,000 
Interest on drawings[(10/100)X10,000X(3/2)]25010,250
Total Amount payable 15,533

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 53 Chapter 6 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close