Question

A & B are in partnership sharing profits and losses in the ratio of 3:2.B died three months after the date of balance sheet. According to the partnership deed the legal personal representatives of B are entitled to the following payments: a) His capital as per the last balance sheet. b) Interest on above capital @3% p.a till the date of death. c) His share of profits till the date of death calculated on the basis of last years’ profits. d) Interest on drawings @2% irrespective of the period.

Answer 1

Answer:

(iii) Every debit must have its corresponding and equal… ... Balance Sheet of Andhra Company as on 31.03.2014. ... (c) A, B and C are partners sharing profit or loss in the ratio of 3:2:1.