CBSE 2023 · Region 4 · Set 3 · Q21

Prakash, Aakash and Vikas were partners in a business sharing profits in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : 1. Their Balance Sheet as at 31st March, $\displaystyle 2022$ was as follows : Balance Sheet of Prakash, Aakash and Vikas as at 31st March, $\displaystyle 2022$ Amount Amount Liabilities Assets < < Creditors $\displaystyle 2,00,000$ Bank $\displaystyle 40,000$ General Reserve $\displaystyle 1,00,000$ Stock $\displaystyle 60,000$ Debtors $\displaystyle 1,60,000$ Capitals : Investments $\displaystyle 1,40,000$ Prakash $\displaystyle 1,20,000$ Furniture $\displaystyle 70,000$ Aakash $\displaystyle 2,00,000$ Building $\displaystyle 2,30,000$ Vikas $\displaystyle 80,000$ $\displaystyle 4,00,000$ $\displaystyle 7,00,000$ $\displaystyle 7,00,000$ Vikas died on 30th September, 2022. On the death of a partner the partnership deed provided for the following : (i) Deceased partner will be entitled to his share of profit up to the date of death calculated on the basis of previous year's profit. (ii) His share in the Goodwill of the firm, calculated on the basis of $\displaystyle 3$ years purchase of average profits of last four years. Profits for last four years ended 31st March were as follows : $\displaystyle 2018$ $\displaystyle 19$, ₹ $\displaystyle 1,60,000$; $\displaystyle 2019$ $\displaystyle 20$, ₹ $\displaystyle 1,00,000$; $\displaystyle 2020$ $\displaystyle 21$, ₹ $\displaystyle 80,000$ and $\displaystyle 2021$ $\displaystyle 22$, ₹ $\displaystyle 60$,000. (iii) Drawings of the deceased partner up to the date of death were ₹ $\displaystyle 20$,000. (iv) Interest on capital was allowed @ $\displaystyle 12$% per annum. Prepare Vikas's Capital account to be rendered to his executors.