Sudhir, Deepak and Naveen were partners in a firm sharing profits and losses in the ratio of 2: 2: 1. On 31st March, 2022 their Balance Sheet was as…

Dr. Sudhir’s Capital A/c Cr. Particulars (₹) Particulars (₹) To Advertisement suspense A/c $\displaystyle 48{,}000$ By Balance b/d $\displaystyle 1{,}60{,}000$ To Sudhir’s Executors A/c $\displaystyle 3{,}49{,}800$ By General Reserve A/c $\displaystyle 40{,}000$ By Deepak’s Capital A/c $\displaystyle 1{,}20{,}000$ By Naveen’s Capital A/c $\displaystyle 60{,}000$ By Profit and Loss Suspense A/c $\displaystyle 15{,}000$ By Interest on Capital A/c $\displaystyle 2{,}800$ $\displaystyle 3{,}97{,}800$ $\displaystyle 3{,}97{,}800$ Workings: Sudhir’s share in Goodwill = $\displaystyle 2$/$\displaystyle 5$ x $\displaystyle 1{,}80{,}000$ x $\displaystyle 5$/$\displaystyle 2$ = ₹$\displaystyle 1{,}80{,}000$ Sudhir’s share in profits till death $\displaystyle 1{,}00{,}000$ x $\displaystyle 1{,}50{,}000$ x $\displaystyle 2$ $\displaystyle 4{,}00{,}000$ $\displaystyle 5$ = ₹$\displaystyle 15{,}000$ Interest on capital of Sudhir $\displaystyle 1{,}60{,}000$ x $\displaystyle 7$/$\displaystyle 100$ x $\displaystyle 3$/$\displaystyle 12$ = ₹$\displaystyle 2{,}800$