A B and C were partners in a firm sharing profits in proposition on their capitals. on 31.3.2019 their balance sheet was as follows. Liability: creditors 16000 reserve 12000 capital A 40000 B 60000 C 100000
assets: building 140000 machinery 60000 stock 8000 debtors 12000 cash 8000. b died on 30.6.2019. under the partnership agreement the executor of a deceased partner were entitled to:
1 .amount standing to the credit of partner capital account.
2. interest on capital at 12% per annum.
3. share of Goodwill of the firm on B's death was valued at 240000.
4. share of profit from the closing of last financial year to the date of death on the basis of last year's profit. profit for the year ended 31.3 2019 was 15000.
prepare B's capital account to be renderned to his executors.
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Answers
Answer:
Hello mate..
Explanation:
solution is given below
Revaluation A/c
Particulars (Dr.) Amount Particulars (Cr.) Amount
To Building a/c
To profit on revaluation
A's capital a/c 16,500
B's capital a/c 11,000
C's capital a/c 5,500 3,000
33,000 By Land a/c
By creditors a/c 30,000
6,000
Partners' Capital a/c
Particulars (Dr.) A B C Particulars (Cr.) A B C
To A's capital a/c
To balance c/d
1,56,500
71,000 25,000
10,500 By balance b/d
By General reserve a/c
By Revaluation a/c
By C's capital a/c 1,00,000
15,000
16,500
25,000 50,000
10,000
11,000 25,000
5,000
5,500
Balance Sheet of A, B & C
Liabilities Amount Assets Amount
Capital
A 1,56,500
B 71,000
C 10,500
Creditors
Bills Payable 2,38,000
44,000
20,000 Land
Building
Plant
Stock
Debtors
Bank