On 31st March, 2014, the Balance Sheet of Pooja, Qureshi and Ross, who were partners in a firm was as under:
On 31st March, 2014, the Balance Sheet of Pooja, Qureshi and Ross, who were partners in a firm was as under:
| Liabilities | ₹ | Assets | ₹ |
| Sundry Creditors
Reserve Fund Capital A/cs: Pooja Qureshi Ross |
2,50,000
2,00,000 1,50,000 1,00,000 1,00,000 |
Building
Investment Qureshi’s Loan Debtors Stock Cash |
2,60,000
1,10,000 1,00,000 1,50,000 1,20,000 60,000 |
| 8,00,000 | 8,00,000 |
Qureshi died on 1st July, 2014. The profit sharing ratio of the partners was 2 : 1 : 1. On the death of a partner, the partnership Deed provided for the following:
(i) His share in the profits of the firm till the date of his death will be calculated on the basis of average profits of last three completed years.
(ii) Goodwill fo the firm will be calculated on the basis of total profit of last two years.
(iii) Interest on loan given by the firm to a partner will be charged at the rate of 6% p.a. or ₹ 4,000. whichever is more.
(iv) Profits for the last three years were ₹ 45,000; ₹ 48,000 and ₹ 33,000.
Prepare Qureshi’s Capital Account to be rendered to his executors.
[Ans.: Amount to Qureshi’s Executors – ₹ 68,875.]
Anurag Pathak Changed status to publish July 26, 2023
