Question : Sindhu, Rahul and Kamlesh, who were sharing profits in the ratio of 3 : 3 : 4 respectively, as at 31st March, 2012 was as follows balance of capital are Sindhu: 1,20,000 Rahul 1,00,000 Kamlesh: 80,000 Sindhu’s loan 20,000 (debit balance)
General Reserve Rs 10,000
Sindhu died on 31st July 2012. The partnership deed provided for the following on the death of a partner :
(a) Goodwill of the firm be valued at two years’ purchase of average profits for the last three years which were Rs.80,000.
(b) Sindhu’s share of profit till the date of his death was to be calculated on the basis of sales. Sales for the year ended 31st March 2012 amounted to Rs.8,00,000 and from 1st April to 31st July 2012 Rs.3,00,000. The profit for the year ended 31st March 2012 was Rs.2,00,000.
(c) Interest on capital was to be provided @ 6% p.a.
Balance due to Sindhu’s Executor will be ------
Option 1: Rs 1,97,500
Option 2: Rs 1,75,900
Option 3: Rs 1,95,000
Option 4: None of the above
Correct Answer: Rs 1,75,900
Solution : Answer = Rs 1,75,900
Sindhu's Capital A/c
| To Sindhu's loan A/c | 20,000 | By Bal. B/d | 1,20,000 |
| By Reserve | 3,000 | ||
| By Goodwill | 48,000 | ||
| To Sindhu's Executor's A/c(B/R) | 1,75,900 | By Int. on capital | 2,400 |
| By profit and Loss Susp. A/c | 22,500 | ||
| 1,95,900 | 1,95,900 |
Hence, the correct option is 2.
Related Questions
Trending Articles/News
