Question - 38 (A)

Following is the Balance sheet of prateek, Rockey and Kushal as on March 31, 2007.

Liabilities : Creditors Rs. 16,000, General Reserve Rs. 16,000, Prateek Capital Rs. 30,000, Rockey Capital Rs. 20,000 and Kushal Capital Rs. 20,000.

Assets : Bill receivable Rs. 16,000, Furniuture Rs. 22,600, Stock Rs. 20,400, Debtor Rs. 22,000, Bank Rs. 18,000, Cash Rs. 3,000.

Rockey died on june 30, 2007 under the terms of the partnership deed the executor's of a deceased partner were entitled to :

  1. Amount standing to the credit of the partner's capital a/c.
  2. Interest on capital at 5% per annum.
  3. Share on goodwill on the basis of twice the average of the past three years profit.
  4. Share the profit form the closing date of the last financial year to the date of death on the basis of last year's profit.
Profit for the year ending on March 31st 2005, 06, 07 were Rs. 12,000 Rs. 16,000,Rs. 14,000 pass necessary journal entries and draw up Rockey's capital acount to be rendered to his exwcuter's.

Question - 38 (B)

A, B and C wer partners sharing profit in the capital ratio their balance sheet on 31st Dec., 2008 was as follows :

Liabilities : Creditors Rs. 20,000, General Reserve Rs. 6,400, A's Capital Rs. 20,000, B's Capital Rs. 10,000, C's capital Rs. 10,000.
Assets : Cash Rs. 11.,400, Debtor Rs. 19,000, Stock Rs. 10,000, Machinery Rs. 24,000, Furniture Rs. 2,000.

A died on 20 March, 2009 According to the of partnership deed the executor of a deceased partner is entitled to get:
  1. Balance of his capital account along with the due share in the reserves.
  2. Share of good. will calculated on the basis of twice the avrage of the last three years profit.
  3. Share of profit from the closure of the last accounting year till the date of death on the basis of the immediate profits were as under. 2006- Rs. 6,000, 2007 - Rs. 8,000, 2008 - Rs. 10,000.
Prepare A's capital Account.

Question - 38 (C)

\'A', 'B' and 'C' are the partners sharing profit and losses in the ratio of 3:1:1. The following is their balance sheet as on 31-12-2006.

Liabilities : Creditors Rs. 4,320, Reserve fund Rs. 3,000, 'A's Capital Rs. 25,000, 'B's Capital Rs. 20,000, 'C's Capital Rs. 15,000.
Assets : Cash in hand Rs. 15,320, Debtors Rs. 5,000, Machinery Rs. 17,000, Furniture Rs. 3,000, Stock Rs. 5,000, Building Rs. 22,000.

'B' was died on 28th Febuary 2007 according to the partnership deed the exefcutors of deceased partners is entitled to get the following amounts :
  1. Capital balance and share of capital reserve.
  2. Goodwill is to be calculated on the basis of twice of the average profit of the years profit of the last three years weer : 2004 - Rs. 12,000, 2005 - Rs. 7,000 and 2006 - Rs. 11,000.
  3. Share of profit is given till the date of death of a partner on the basis of profit shares in the last years balance sheet till the date of death.
Show the calculatation of amount payable to the deceased partners.

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