Question

Aman, Naman and Raman were partners in a firm sharing profits and losses in the ratio 2:2:1. On 31st March 2020 their Balance sheet was as follows: Liabilities Amount Assets Amount Capital Aman - 8,00,000 Naman -7,00,000 Raman- 5,00,000 Workmen compensation Reserve General Reserve Employee Provident fund Creditors 20,00,000 50,000 2,00,000 1,00,000 5,00,000 Fixed Assets Stock Debtors Cash at bank Advt. Suspense A/c(Deferred Revenue) 14,00,000 4,00,000 3,00,000 7,00,000 50,000 28,50,000 28,50,000 Naman died on 30th June 2020 according to the partnership deed is legal hiers were entitled to: (a) balance in his capital account (b) his capital first share of goodwill will be calculated on the basis of thrice of the average profit of past four year profit (c) his share of profit up to the date of death on the basis of advocate of last 2 years (d) interest on capital 12% per annum up to the date of death. The firm profit for the last four year ended 31st March were: 2017 Rs 2,40,000 , 2018 Rs 4,00,000 , 2019 Rs 5,20,000 , 2020 Rs 4,40,000. Naman Executors was paid the sum due immediately. Prepare Naman Capital Account to be presented to his legal heirs

Answer 1

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here is the solution of 33 question of ts grewal 2021 edition class 12

Answer 2

Answer:

Naman Capital Account will show the balance of Rs. 13,59,000/-

Explanation:

Step1

Aman: Naman: Raman=  2:2:1

Aman: Raman=2:1

Step2

Calculation of Goodwill:

Average profit =240,000+400,000+520,000+440,000/4 = 400,000

Firm's goodwill = 3*400,000 = Rs. 1200,000

Naman' share =2/5*12,00,000 = Rs. 480,000

The journal entry would be-

Aman's capital a/c  and Raman capital a/c debit( 320,000 and 160,000)

to Naman capital a/c (480,000)

Step 3

Naman share of g/w = 480,000*2/5*3/12 = 48000

Step 4

Naman capital account Credit side would represent

Balance b/d = 700,000

Aman capital a/c = 320,000

Raman Capital a/c = 160,000

P/L reserve               = 48,000

WCR                          = 20,000

General Reserve         = 80,000

interest on capital  = 21000

Total                      = 13,59,000

Debit side would represent

Adv. Suspense a/c = 20,000

Naman executive account = 13,29,000

total                             = 13,59,000

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