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:
|Creditors||10,000||Plant & Machinery||20,000|
|General reserve||10,000||Furniture & Fixtures||2,500|
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)
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The solution of Question 53 Chapter 6 of +2 Part-1: –
|Calculation of the amount payable to the legal representative of B|
|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|
|Interest on drawings[(10/100)X10,000X(3/2)]||250||10,250|
|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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement