A). A, B and C are partners in a trading firm. The firm has a fixed capital of
*60,000 held equally by all the partners. Under the partnership deed,
the partners were entitled to:
(a) A and B to a salary of 1,800 and 1,600 p.m. respectively.
(b) In the event of the death of a partner, Goodwill was to be valued at
2 years' purchase of the average profits of the last 3 years.
(c) Profit upto the date of death based on the profits of the previous
year.
(d) Partners were to be charged interest on drawings at 5% p.a. and
allowed interest on capital at 6% p.a.
A died on 1st January, 2020. His drawings to the date of death were
2,000 and interest thereon 60. The profits for the 3 years ending 31st
March, 2017, 2018 and 2019 were * 21,200, * 3,200 (Dr.) and 9,000
respectively.
Prepare A's Capital A/c to calculate the amount to be paid to his
(C.B.S.E., 2011-A1-C - modified)
executors.
[Ans. Due to Executors 43,290]
Answers
Answer:
A). A, B and C are partners in a trading firm. The firm has a fixed capital of
*60,000 held equally by all the partners. Under the partnership deed,
the partners were entitled to:
(a) A and B to a salary of 1,800 and 1,600 p.m. respectively.
(b) In the event of the death of a partner, Goodwill was to be valued at
2 years' purchase of the average profits of the last 3 years.
(c) Profit upto the date of death based on the profits of the previous
year.
(d) Partners were to be charged interest on drawings at 5% p.a. and
allowed interest on capital at 6% p.a.
A died on 1st January, 2020. His drawings to the date of death were
2,000 and interest thereon 60. The profits for the 3 years ending 31st
March, 2017, 2018 and 2019 were * 21,200, * 3,200 (Dr.) and 9,000
respectively.
Prepare A's Capital A/c to calculate the amount to be paid to his
(C.B.S.E., 2011-A1-C - modified)
executors.
[Ans. Due to Executors 43,290]