Vilas, Mangal, Guru were partners in a business sharing profits and losses in the ratio of 2: 1: 1 respectively. Their Balance sheet as on 31st March, 2012 was as follows:
Balance Sheet as on 31st March 2012
Liabilities |
Amt. (Rs.) |
Assets |
Amt. (Rs) |
Capital |
|
Land and Building |
6,000 |
Vilas |
6,000 |
Debtors |
5,000 |
Mangal |
7,000 |
Stock |
3,000 |
Guru |
3,400 |
Cash |
6,000 |
Creditors |
2,000 |
|
|
General Reserve |
1,600 |
|
|
|
20,000 |
|
20,000 |
Guru died on 1st July, 2012
1) Land and Building was to be revalued to Rs. 7,000 and RDD was to be created of Rs. 200.
2) The drawing of Guru upto the date of his death amounted to Rs. 1,000/-.
3) Charge interest on drawing Rs. 100/-
4) His share of goodwill should be calculated at ‘Three’ years purchase of the profits for the last four years which were Rs. 15,000, Rs. 13,000, Rs. 7,000, Rs. 5,000
5) The deceased partners share of profit upto the date of his death to be calculated on the basis of average profit of last two years.
Prepare:
1) Profit and Loss Adjustment A/c
2) Partners Capital A/c’s
3) Balance Sheet of the continuing firm.
4) Give working of share of profit and goodwill.