CBSE 2026 · Region 3 · Set 2 · Q17

Rani, Megha and Mahan were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : 1. On 1st April, $\displaystyle 2025$, their capitals were ₹ $\displaystyle 7,50,000$; ₹ $\displaystyle 4,00,000$ and ₹ $\displaystyle 5,00,000$ respectively. The firm closes its books on 31st March every year. On 31st December, $\displaystyle 2025$, Mahan died. The partnership deed provides that in the event of death of a partner, his/her legal representatives will be entitled to the following : (i) Interest on capital @ $\displaystyle 12$% p.a. (ii) His share in the profits of the firm till the date of his death. Mahan had withdrawn ₹ $\displaystyle 1,20,000$ for personal use till 31st December, $\displaystyle 2025$ and interest on drawings @ $\displaystyle 10$% p.a. is to be charged. His share in the profits of the firm was calculated on the basis of the average profits of last three years. The average profits of last three years were ₹ $\displaystyle 6,00$,000. Pre are Mahan's Capital Account to be presented to his legal representatives.