CBSE 2024 · Region 1 · Set 3 · Q23

Jatin, Kartik and Lakhan were partners in a firm sharing profits and losses in the ratio of $\displaystyle 7$ : $\displaystyle 5$ : 3. Their Balance Sheet as at 31st March, $\displaystyle 2023$, was as follows : Balance Sheet of Jatin, Kartik and Lakhan as at 31st March, $\displaystyle 2023$ Amount Amount Liabilities Assets < < Bills Payable $\displaystyle 80,000$ Bank $\displaystyle 40,000$ General Reserve $\displaystyle 60,000$ Stock $\displaystyle 80,000$ Capitals : Debtors $\displaystyle 1,00,000$ Jatin $\displaystyle 1,00,000$ Fixed Assets $\displaystyle 1,20,000$ Kartik $\displaystyle 60,000$ Lakhan $\displaystyle 40,000$ $\displaystyle 2,00,000$ $\displaystyle 3,40,000$ $\displaystyle 3,40,000$ Kartik died on 30th September, 2023. According to the partnership deed, Kart ik's legal representatives were entitled to the following : (i) Balance in his Capital Account. (ii) Interest on capital @ $\displaystyle 10$% p.a. (iii) His share of goodwill. Goodwill of the firm was valued on the basis of twice the average of the preceding four years profits. (iv) His share in profits up to the date of death on the basis of total profits for the preceding two years. Profits for the previous four years were : < $\displaystyle 2019$ $\displaystyle 20$ $\displaystyle 1,41,000$ $\displaystyle 2020$ $\displaystyle 21$ $\displaystyle (30,000)$ $\displaystyle 2021$ $\displaystyle 22$ $\displaystyle 60,000$ $\displaystyle 2022$ $\displaystyle 23$ $$69,000$ Prepare Kartik's Capital Account to be rendered to his legal representatives.