Ajay, Vijay and Sanjay were partners in a firm sharing profits in the ratio of 5: 3: 2. Ajay died on 20th February, 2026. The Balance Sheet of the firm on that date was as follows:
Ajay, Vijay and Sanjay were partners in a firm sharing profits in the ratio of 5: 3: 2. Ajay died on 20th February, 2026. The Balance Sheet of the firm on that date was as follows:
According to the Partnership Deed, on the death ofa partner,the executor of the deceased partner willbe entitled to:
(i) Balance in Capital Account.
(ii) His share in profit/loss on revaluation of assets and reassessment of liabilities which wereas follows:
(a) Machinery is to be revalued at 45,000 and furniture at ₹ 7,000.
(b) A provision of 10% was to be created for Doubtful Debts.
(iii) The amount payable to Ajay was transferred to his Executors’ Loan Account which was to be paid later.
Prepare Revaluation Account, Partners’ Capital Accounts, Ajay’s Executors’ Account and the Balance Sheet of Vijay and Sanjay who decided to continue the business keeping their capital balances in their new profit-sharing ratio. Surplus or deficit was to be transferred to Current Accounts of the partners.
[Ans.: Revaluation Profit— 3,500;Ajay’s Executors Loan- 25,750; Partners’ Capital Account Balances: Vijay— 19,650; Sanjay—₹ 13,100; Current Account Balances: Vijay— 400 (Cr.); Sanjay—₹ 400 (Dr.); Total of Balance Sheet-77,900.]
Solution:-
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 19,000 | Machinery | 41,000 |
| General Reserve | 20,000 | Furniture | 6,000 |
| Loan by Ajay | 7,000 | Stock | 9,000 |
| Capital A/cs: Ajay Vijay Sanjay | 12,000 16,000 10,000 | Debtors | 15,000 |
| Cash | 3,000 | ||
| Profit & Loss A/c | 10,000 | ||
| 84,000 | 84,000 |
Anurag Pathak Changed status to publish
