q no.14

Q. 14 Anil Bhanu and Chandu were partners in firm sharing profits in the ratio of 5: 3: 2. On 31st March. 2016 their Balance Sheet was as under :
Liabilities Rs. Assets Rs.
Bank Overdraft
Reserves Fund
Capital A/cs:
Anil             30,000
Bhanu​          25,000
chandu         15,000

  2,67,000     2,67,000
Due to an accident. Anil died on 1st October, 2016. Anil's family became financially weak. Bhanu and Chandu decided to admit Anil's daughter in the business. It was agreed between Anil's executors and the remaining partners that :
(a) Goodwill to be valued at 2 1/2 years' purchase of the average Profit of the previous four years which were: Year 2012-13: Rs.13,000; Year 2013-14: Rs. 12,000; Year 2014-15: Rs.20,000; Year 2015-16: Rs.15,000.
(b) Patents be valued at Rs.8,000: Machinery at Rs. 28,000: and Building at Rs. 2,50,000.
(c) Profit for the year 2016-17 be takent as having accrued at the same rate as that of the previous year.
(d) Interest on capital be provided at 10% P.a.
(e) Half of the amount due to Anil be paid immediately.
Prepare Anil's Capital Account and Anil's Executors' Account as on 1st October, 2016.Identify the value higlighted in this question.

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