A, B and C were carrying on business with the following assets with effect from1 Anril, 2018 : Furniture 18,000; Machine *72,000; Cash 10,000: Debtors20.000. Their profit-sharing ratio was 5:3:2. Capital is also shared in the same ratio.died on 30th September, 2018. His son claimed his father's interest in the firmThe following was the settlement :(1) Allow his capital to his credit on the date of death.(2) Give 5% p.a. interest on his capital.(3) He had been drawing @ +600 per month which he withdrew at the beginningof each month. He be allowed to retain these drawings as a part of his share ofprofit.(4) Interest @ 6% p.a. be charged on his drawings.(5) Goodwill was evaluated twice the average of profits which were 21,000.Prepare B's Personal Account.SOLUTION
Answers
Answer:
B and C were carrying on business with the following assets with effect from1 Anril, 2018 : Furniture 18,000; Machine *72,000; Cash 10,000: Debtors20.000. Their profit-sharing ratio was 5:3:2. Capital is also shared in the same ratio.died on 30th September, 2018. His son claimed his father's interest in the firmThe following was the settlement :(1) Allow his capital to his credit on the date of death.(2) Give 5% p.a. interest on his capital.(3) He had been drawing @ +600 per month which he withdrew at the beginningof each month. He be allowed to retain these drawings as a part of his share ofprofit.(4) Interest @ 6% p.a. be charged on his drawings.(5) Goodwill was evaluated twice the average of profits which were 21,000.Prepare B's Personal Account.SOLUTION