Question

32. Kavita, Leena and Monica are partners in firm sharing profits in the ratio of 1:1:3 respectively. Their Capital
Accounts showed the following balances on 31st March, 2012: Kavita 70,000; Leena * 65,000 and Monica
*2,10,000. Firm closes its accounts every year on 31st March. Kavita died on 30th September, 2012. In the
event of death of any partner, the Partnership Deed provides for the following:
(a) Interest on capital will be calculated at the rate of 6% p.a.
(b) The deceased partner's share in the goodwill of the firm will be calculated on the basis of 2
purchase of the average profit of last three years. The profits of the firm for the last three years were
90,000; * 1,00,000 and 1,10,000 respectively.
(c) Her share in the Reserve Fund of the firm will be paid. The Reserve Fund of the firm was * 60,000 at
the time of Kavita's death.
years
(d) Her share of profit till the date of death will be calculated on the basis of sales. It is also specified that
the sales during the year 2011-12 were 20,00,000. The sales from 1st April, 2012 to 30th September
2012 were 4,00,000. The profit of the firm for the year ending 31st March, 2012 was * 2,00,000.
Prepare Kavita's Capital Account to be presented to his legal representative.
(AI 2013
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Answer 1

Answer:

kavita capital account to be legal representative