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Question : L, M and R were partners sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on March 31 every year. On June 30, 2017, R died. The following information is provided on R’s  death:

(i) Balance in his capital account in the beginning of the year was Rs.6,50,000.
(ii) He withdrew Rs.60,000 on May 15, 2017 for his personal use.
On the date of death of a partner the partnership deed provided for the following:
(a) Interest on capital @ 10 % per annum.
(b) Interest on drawings @ 12 % per annum.
(c) His share in the profit of the firm till the date of death, to be calculated on the basis of the rate of Net Profit on Sales of the previous year, which was 25 %. The Sales of the firm till June 30, 2017 were Rs.6,00,000.

Amount due to R’s Executor’s is

 

Option 1: Rs.93,530
 

Option 2: Rs.93,500

Option 3: Rs.90,000

Option 4: Rs.90,535


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Rs.90,535


Solution : Answer = Rs 90535

Capital = 65000
(+) Interest on  Capital= 1625
(65000 * 10/100 * 3/12)

(+) Profit =30,000
(6,00,000 * 25% = 1,50,000 * 1/5)

(-) Drawings =  = (6000)
(-) Interest on Drawings = (90)
6000 * 12/100 * 1.5/12
90,535
Hence, the correct option is 1.

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