Arun, varun , karan were partners in a firm sharing profits in the ratio of 4:3:3. ON 31.3.2014 their balance sheet was as follows: -
Liablities | Rs | Assets | Rs. |
Capital : | Cash | 8000 | |
Arun | 70000 | Debtors | 13000 |
Varun | 68000 | B/R | 9000 |
B/P | 12000 | Furniture | 27000 |
Karan's Loan | 28000 | Plant and Machinery | 125000 |
Sundry Creditors | 17000 | Karan's Capital | 13000 |
195000 | 195000 |
On 30.9. 2014 karan died. Adjustments: -
His share of G/w is calculated on the basis of the year purchase of the avg. profits of last 4 years i.e 190000, 170000, 180000, 160000
His share in the profit is calculated on the basis of the year purchase of the avg. profits of last 4 years.
Int 8% on the credit bal if any in his capital
Int of loan @ 12% p.a
Please provide all the necessary accounts.
Dear Student,
Notes:
Regards
Karan’s Capital Account | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | J.F. | Amount (Rs) |
Date | Particulars | J.F. | Amount (Rs) |
||
Balance b/d | 13,000 | Karan’s Loan A/c | 28,000 | ||||||
Karan’s Executors A/c | 2,00,430 | Interest on Loan A/c | 1,680 | ||||||
Arun’s Capital A/c | 90,000 | ||||||||
Varun’s Capital A/c | 67,500 | ||||||||
Profit and Loss Suspense A/c | 26,250 | ||||||||
2,13,430 | 2,13,430 | ||||||||
Notes:
Regards