Question - 41

A and B took an insurance policy o Rs. 12,000 the annual premium of Rs. 700 on which is paid out of firm's profits they share profits and losses in the ratio of 2:1.

On 31st March, 2016, A died his share in the profits up to 31st Marhc, 2016 amounted to Rs. 1,250 Additional information was gathered as under:

  1.  Interest on capital standing on the date of last Balance sheet will be paid @ 10% per annum A's capital was Rs. 15,000.
  2.  The premium for goodwill was valued at Rs. 24,000.
  3.  A had withdrawn Rs. 4,000 till 31st March, 2016.

Prepare A's capital Account on the date of his death.

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