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: -
|Karan's Loan||28000||Plant and Machinery||125000|
|Sundry Creditors||17000||Karan's Capital||13000|
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.
|Karan’s Capital Account|
|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|