A, B and C were partners in a firm. A died on 31.3.2018 and the Balance Sheet of the firm on that date was as under:
A, B and C were partners in a firm. A died on 31.3.2018 and the Balance Sheet of the firm on that date was as under:
Balance Sheet of A, B and C as at 31.3.2018
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 7,000 | Cash at Bank | 12,000 |
| General Reserve | 9,000 | Debtors | 32,000 |
| Workmen’s Compensation Reserve | 10,000 | Furniture | 30,000 |
| Profit & Loss Account | 6,000 | Plant | 40,000 |
| Capitals: A B C | 40,000 30,000 20,000 | Patents | 8,000 |
| Â | 1,22,000 | Â | 1,22,000 |
On A’s death it was found that patents were valueless, furniture was to be brought down to 24,000, plant was to be reduced by ₹ 10,000 and there was a liability of ₹ 7,000 on account of workmen’s compensation.
Pass the necessary journal entries for the above at the time of A’s death.
[Ans. Amount due to A’s Executors ₹ 38,000.]
Anurag Pathak Answered question 2 days ago
