CBSE 2025 · Region 7 · Set 3 · Q22

Hans, Sohan and Kishore were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 2$ : 1. The firm closes its books on 31st March every year. On 1st August, $\displaystyle 2024$, Kishore died. The partnership deed provided that on the death of a partner, his executors will be entitled for : (i) Balance in his capital account less drawings. (ii) Interest on capital @ $\displaystyle 12$% p.a. (iii) His share of goodwill. (iv) His share in the profits of the firm till the date of his death calculated on the basis of average profit of the previous four years. The following information was obtained from the books of the firm on the date of Kishore's death : (a) Balance in his capital account on 1st April, $\displaystyle 2024$ was $\displaystyle 4,00,000$ and he had withdrawn $\displaystyle 90,000$ till that date for his treatment. (b) Goodwill of the firm on Kishore's death was valued at $\displaystyle 60$,000. (c) Profits of the firm for the last four completed years were : ₹ $\displaystyle 2,00,000$, $\displaystyle 2,20,000$, $\displaystyle 1,20,000$ and $\displaystyle 1,80$,000. Prepare Kishore's capital account to be presented to his executors.