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. |
Creditors Bank Overdraft Reserves Fund Capital A/cs: Anil 30,000 Bhanu​ 25,000 chandu 15,000 |
91,000 1,00,000 6,000 70,000 |
Buildings Machinery Stock Patents Debtors Cash |
2,00,000 30,000 10,000 11,000 8,000 8,000 |
2,67,000 | 2,67,000 |
(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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