A, B and C are the partners in a business sharing profits and losses in the ratio of 2 : 2 : 1 respectively. Their Balance Sheet as on 31st March 2017 was as follows:
C died on 30th Sept, 2017. The partnership deed provides the following:
1. The deceased partner will be entitled to his share of profit up the date of death calculated on the basis of previous year’s profit.
2. He will be entitled to his share cf goodwill of the firm calculated on the basis of three years purchase of average of last four years profit. The profits for last four years arc given below; 2013-14 Rs. 80,000 ; 2014-15 Rs. 50,000; 2015-16 Rs. 40,000 and 2016-17 Rs. 30,000.
3. Interest on capital is to be allowed at 12% p.a. Prepare C’s Executors account.
