Practical Problem 02
Practical Problems | Q 2 | Page 202
2. Rahul, Rohit AND Ramesh are in A business Sharing profits and losses in the Ratio of 3:2:1 respectively. | |||
Their Balance Sheet AS on 31st MARch 2017 WAS AS follows. | |||
Balance Sheet as on 31st March 2017 | |||
Liabilities | Amt | Assets | Amt |
Capital Account : | Debtors 1,00,000 | ||
Rahul | 2,20,000 | Less: R. D. D. (10,000) | 90,000 |
Rohit | 2,10,000 | Plant and Machinery | 85,000 |
Ramesh | 2,40,000 | Investment | 3,50,000 |
creditors | 80,000 | Motor lorry | 1,00,000 |
Bills Payable | 7,000 | Building | 80,000 |
General Reserve | 96,000 | Bank | 1,48,000 |
8,53,000 |
| 8,53,000 | |
On 1st October 2017 RAMESH died AND the PARTNERSHIP deed provided THAT | |||
1) R.D.D. WAS MAINTAINED AT 5% on Debtors | |||
2. PLANT AND MACHINERY AND Investment were VALUED AT ` 80,000 AND ` 4,10,000 respectively. | |||
3. Of the creditors AN item of ` 6000 WAS no longer A LIABILITY AND hence WAS properly ADJUSTED. | |||
4. Profit for 2017-18 WAS ESTIMATED AT `120,000 AND RAMESH SHARE in it up to the DATE of his DEATH | |||
WAS given to him. | |||
5. Goodwill of the Firm WAS VALUED AT two times the AVERAGE profit of the LAST five YEARS. Which | |||
were 2012-13 Rs1,80,000, 2013-14 Rs2,00,000, 2014-15 Rs 2,50,000 | |||
2015-16 Rs1,50,000 2016-2017 Rs 1,20,000 | |||
RAMESH SHARE in it WAS to be given to him | |||
6. SALARY 5,000 p.m. WAS PAYABLE to him | |||
7. Interest on CAPITAL AT 5% i.e. WAS PAYABLE AND on DRAWINGS ` 2000 were Charged. | |||
8. DRAWINGS MADE by RAMESH up to September 2017 were `5,000 p.m. | |||
Prepare Ramesh’s Capital A/c showing the amount payable to his executors | |||
Give Working of Profit and Goodwill | |||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||