Q6:
6. AK, BK and SK are partners in a firm sharing profits in the proportion of 3:2:1 Their balance sheet as on 313.2003 stood as follows:
Liabilities | Amount | Assets | Amount |
Bill payable Creaditors General Reserve Capitals: AK 40,000 BK 24,000 SK 16,000 |
24,000 28,000 24,000 80,000 |
Building Cash in hand Cash at bank Debtors Bills receivable stock Investment |
42,000 24,000 27,400 24,000 8,600 3,500 26,500 |
1,56,000 | 1,56,000 |
BK diedon 30.6.2003 and according to the deed of the said partnership his executors are entitled to be paid as under:
a) The capital to his credit at the time of his death and interest on it @ 10% p.a.
b) His Proportionate share of general reserve.
c) His share of profit for the intervening period wil be based on the sales during that period. Sales were calculated at Rs. 2,40,000 (for 3 months) for 2003-04. The rate of profit during past three years had been 10% on sales.
d) Goodwil according to his share of profit to be calculated by taking twice the amount of profits of the last three years less 20%. The profits of the previous three years were : 2000-01 Rs.16,400; 2001-02 Rs.18,000; 2002-03 Rs.19,600.
e) The investment were sold at par and his executors were paid out.
Prepare BK's Capital A/c anda his executor's account.