Question

Chapter 7. Death of a Partner 739
Bring profits in the ratio of 1:1:3. Their Capist
are partners in a firm sharing profits in th
following balances on 1st April, 2017:
000: Bhim- 1,50,000 and Nakul-
4,50.000
anun Bhim and Nakul are partner
showed the following b
Arun-72,00,000; Bhimp
Firm closes its accounts every v
died on 31st March, 2018. As per the Partnership
te accounts every year on 31st March, Bhim
all be allowed from the first of day of the a
f day of the accounting year till the date of his death
need his legal heirs were entitled to:
0 Interest on capital will be allowed
@ 10% p.a.
share in the Goodwill of the firm will be
profit of the last three years. The profits of the for
(i) The deceased partner's share in the
purchase of the average profit of the
e firm will be calculated on the basis of 2 years
he profits of the firm for the last three years
17-52,00,000 and 2018—1,60,000.
of the firm for the year ended 31st March, 2018 was
90,000; 2017–2007
ad 31st March, were: 2016-
interest on capital.Bhims Executor was paid the sum due in un
(iii) His share of Profits till th
21st March, 2018 to be presented to his executor and his free to
1,60,000 before providing for interest on
annual instalment with interest @ 10% p.a.
Prepare Bhim's Capital Account as on 31st March
Ioan Account for the year ending 31st March, 2019 and 31st March​

Answer 1

Answer:

Explanation:

Profit before appropiation:= 160000

Interest on Arun's capital = 2000000 * 10 % = 20000

Interest on Nakul's capital= 150000 *10 %= 15000

Interest on Bhims capital = 450000 *10 % = 45000

Net profit available = 160000 -20000 -15000 -45000=  80000

Bhim's profit share = 80000 * 1/5 = 16000