ravi sharma goyal are partners in a firm on 1 apr 2012 the balances in their capitals ravi 400000 sharma 420000 goyal 370000 firm closes its books on 31 mar every year sharma died on 30 sep 2012 in the event of death of any partners following are the provisions in the partnership deed

interest on capital to be calculated at @ 10% pa

the deceased partner legal repesentatve will be paid 35000 rs for his share of goodwill

firm had reserve fund of rs 210000 the deceased partner paid his share in the reserve fund his share of profit till date of death will be calculated on the basis of sales it is also spcified that sales during the year 2011-12 were 1500000 the sales fom 1 apr 2012 to 30 sep 2012 were 300000 rs the profit of the firm for the year ending 31 mar 2012 was rs 300000 prepare sharma capital accont to be presented to his representative

Dear Student,

The solution to your query is provided below.
Sharma’s Capital Account
Particulars Amount Particulars Amount
Sharma's Executor Account 5,66,000 Balance b/d 4,20,000
    Interest on Capital A/c 21,000
    Goodwill A/c 35,000
    Reserve A/c 70,000
    P&L Suspense A/c 20,000
  5,66,000   5,66,000
       

Working Notes:
 Up-to-date profit of Mr. Sharma = Previous Year's ProfitPrevious Year's Sales × Sales till the date of death × Share of deceased partneror, Up-to-date profit of Mr. Sharma  = 3,00,00015,00,000 × 3,00,000 × 13 = Rs 20,000                                                           

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