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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


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 11th Jan, 2024

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.

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