Ram, Ravi and Rohan were partners sharing profits in the ratio of $\displaystyle 2$:$\displaystyle 3$:1. On 31st March, $\displaystyle 2023$, their Balance Sheet was as follows : Balance Sheet of Ram, Ravi and Rohan as on $\displaystyle 31.3.2023$ Liabilities Amount (?) Assets Amount (?) Creditors $\displaystyle 3,62,000$ Cash $\displaystyle 14,000$ General Reserve $\displaystyle 18,000$ Bank $\displaystyle 2,96,000$ Capitals : Stock $\displaystyle 80,000$ Ram $\displaystyle 1,00,000$ Debtors $\displaystyle 3,00,000$ Ravl $\displaystyle 2,00,000$ Less : provlsion for Rohan $\displaystyle 3,00,000$ $\displaystyle 6,00,000$ doubtful debts $\displaystyle 10,000$ $\displaystyle 2,90,000$ Investments $\displaystyle 50,000$ Land $\displaystyle 2,50,000$ $\displaystyle 9,80,000$ $\displaystyle 9,80,000$ Rohan died on 30th September, 2023. On the death of a partner the partnership deed provided for the following : (i) Goodwill was to be valued at two years purchase of average profit of last three years. The profits for the last three years were : $\displaystyle 2020$-$\displaystyle 21$ ₹ $\displaystyle 45,000$, $\displaystyle 2021$-$\displaystyle 22$ ₹ $\displaystyle 90,000$ and $\displaystyle 2022$-$\displaystyle 23$ ₹ $\displaystyle 1,35$,000. (ii) Deceased partner's share of profit till the date of his death will be calculated on the basis of average profit of last three years. Prepare Rohan's Capital Account to be rendered to his executors.

Dr Rohan’s Capital A/c Cr Particulars Amount Particulars Amount ₹ ₹ To Rohan’s By Balance b/d ½ $\displaystyle 3,00,000$ Executor’s A/c ½ $\displaystyle 3,40,500$ $\displaystyle 3,000$ By General Reserve A/c $\displaystyle 1$ By Ram’s Capital A/c(goodwill) ½ $\displaystyle 12,000$ $\displaystyle 18,000$ By Ravi’s Capital A/c(goodwill) ½ $\displaystyle 7,500$ By Profit &Loss Suspense A/c $\displaystyle 1$ $\displaystyle 3,40,500$ $\displaystyle 3,40,500$ Working Notes: 1. Calculation of Goodwill Average profit= $\displaystyle 45,000$+$\displaystyle 90,000$+$\displaystyle 1,35,000$ = ₹$\displaystyle 90,000$ $\displaystyle 3$ Firm’s Goodwill= Average Profit x $\displaystyle 2$ = ₹$\displaystyle 90,000$ x $\displaystyle 2$ =₹ $\displaystyle 1,80,000$ Rohan’s share of goodwill= ₹$\displaystyle 1,80,000$ x $\displaystyle 1$/$\displaystyle 6$ =₹$\displaystyle 30,000$ 2. Calculation of Rohan’s share of Profit= ₹$\displaystyle 90,000$ x $\displaystyle 1$/$\displaystyle 6$ x $\displaystyle 6$/$\displaystyle 12$ = ₹$\displaystyle 7,500$