Question 58 Chapter 6 of +2- Part

Question 58 Chapter 6 of +2-Part-1

58. (Deceased Partner’s Ac) Following is the balance sheet of Tony, Sony and Remy as on March 31, 2019 :

Liabilities Rs.Assets Rs. 
Creditors 19,860Cash in hand 1,210
General reserve 3,000Stock10,750
Capital A/c  Debtors10,750
A10,000Investments 10,430
B6,000Buildings 8,000
 42,860 42,860

Sony died on June 30, 2019. Under the terms of the partnership deed, the executors of a deceased partner were entitled to:

  1. Amount standing to the credit of the partner’s capital account.
  2. Interest an capital at 5% per annum.
  3. Share of goodwill on the basis of twice the average of the past three years’ profit and
  4. Share of profit from the closing of the last financial year to the date of death on the basis of the last three year’s profit.
    Profits for 2013-14, 2014-15 and 2015-16 were Rs. 12,000, Rs. 16,000 and Rs. 14.000 respectively.
    Profits were shared in the ratio of capitals. Draw up the Sony’s Account to be rendered to his executors .

The solution of Question 58 Chapter 6 of +2 Part-1: –

Sony’s Capital A/c
To Sony ‘s executor’s A/c 33,821By balance b/d 20,000
   By general reserve 4,571
   By interest on capital A/c 250
   By Tony’s capital A/c 4,800
   By Romy’s capital A/c 3,200
   By profit & loss A/c 1,000
  33,821  33,821

Working notes :

1.) Interest on capital :

1.) interest in on capital =5x3x20,000
 =Rs 250    

1.) Share of goodwill :

Total goodwill of firm=12,000+16,000+14,000
 =Rs 28,000
Sony’s share being 2/7=2x28,000
 =Rs 8,000  
Tony’s gain=3x8,000
 =Rs 4,800  
Romy’s gain=2x8,000
 =Rs 3,200  
3.) Interest on capital :=2x3x14,000
 =Rs 1,000    

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

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