Question

Paltu, Biltu and Laltu were carrying on business with the following assets with effect from 1.1.20:

Furniture * 36,000, Machine 1,44,000, Cash 20,000, Debtors 40,000. Their profit sharing ratio was

5:3:2.

Capital is also shared in the same ratio. Biltu died on 30.6.20. His son claimed his father's interest in the

firm.

The following was the settlement:

(i) Allow his capital to his credit on the date of death.

(ii) Give 5% per annum interest on his captial.

(iii) He had been drawing @1,200 per month which he withdrew at the beginning of each month. He be

allowed to retain these drawings as a part of his share of profit.

(iv) Interest @ 6% per annum be charged on his drawings.

(v) They had separate life policies for which the premium had been paid out of profit and loss account of the firm : Paltu 1,00,000; Biltu 1,20,000, Laltu 60,000. The surrender value of Paltu's policy was 50% whereas of Laltu's policy it was 40%.

(vi) Goodwill was evaluated twice the average of profits which were 7,200. Prepare Biltu's Account to be rendered to his son. Show the workings clearly.​

Answer 1

Answer:

question answer social 6th exam team1 inscriptions are - sources fill in the blanks