A). A, B and C are partners in a trading firm. The firm has a fixed ca

1.	A). A, B and C are partners in a trading firm. The firm has a fixed capital of60,000 held equally by all the partners. Under the partnership deed,the partners were entitled to:(a) A and B to a salary of 1,800 and 1,600 p.m. respectively.(b) In the event of the death of a partner, Goodwill was to be valued at2 years' purchase of the average profits of the last 3 years.(c) Profit upto the date of death based on the profits of the previousyear.(d) Partners were to be charged interest on drawings at 5% p.a. andallowed interest on capital at 6% p.a.A died on 1st January, 2020. His drawings to the date of death were2,000 and interest thereon 60. The profits for the 3 years ending 31stMarch, 2017, 2018 and 2019 were 21,200, * 3,200 (Dr.) and 9,000respectively.Prepare A's Capital A/c to calculate the amount to be paid to his(C.B.S.E., 2011-A1-C - modified)executors.[Ans. Due to Executors 43,290]
Answer» Answer: A). A, B and C are partners in a trading firm. The firm has a fixed capital of 60,000 held equally by all the partners. Under the PARTNERSHIP deed, the partners were entitled to: (a) A and B to a salary of 1,800 and 1,600 p.m. RESPECTIVELY. (b) In the event of the death of a partner, Goodwill was to be VALUED at 2 years' purchase of the average profits of the last 3 years. (c) Profit upto the date of death based on the profits of the previous year. (d) Partners were to be charged interest on drawings at 5% p.a. and allowed interest on capital at 6% p.a. A died on 1st January, 2020. His drawings to the date of death were 2,000 and interest thereon 60. The profits for the 3 years ending 31st March, 2017, 2018 and 2019 were 21,200, * 3,200 (Dr.) and 9,000 respectively. Prepare A's Capital A/c to calculate the amount to be paid to his (C.B.S.E., 2011-A1-C - modified) executors. [Ans. Due to Executors 43,290]

A). A, B and C are partners in a trading firm. The firm has a fixed capital of60,000 held equally by all the partners. Under the partnership deed,the partners were entitled to:(a) A and B to a salary of 1,800 and 1,600 p.m. respectively.(b) In the event of the death of a partner, Goodwill was to be valued at2 years' purchase of the average profits of the last 3 years.(c) Profit upto the date of death based on the profits of the previousyear.(d) Partners were to be charged interest on drawings at 5% p.a. andallowed interest on capital at 6% p.a.A died on 1st January, 2020. His drawings to the date of death were2,000 and interest thereon 60. The profits for the 3 years ending 31stMarch, 2017, 2018 and 2019 were 21,200, * 3,200 (Dr.) and 9,000respectively.Prepare A's Capital A/c to calculate the amount to be paid to his(C.B.S.E., 2011-A1-C - modified)executors.[Ans. Due to Executors 43,290]

Answer»

Answer:

A). A, B and C are partners in a trading firm. The firm has a fixed capital of

*60,000 held equally by all the partners. Under the PARTNERSHIP deed,

the partners were entitled to:

(a) A and B to a salary of 1,800 and 1,600 p.m. RESPECTIVELY.

(b) In the event of the death of a partner, Goodwill was to be VALUED at

2 years' purchase of the average profits of the last 3 years.

year.

(d) Partners were to be charged interest on drawings at 5% p.a. and

allowed interest on capital at 6% p.a.

A died on 1st January, 2020. His drawings to the date of death were

2,000 and interest thereon 60. The profits for the 3 years ending 31st

March, 2017, 2018 and 2019 were * 21,200, * 3,200 (Dr.) and 9,000

respectively.

Prepare A's Capital A/c to calculate the amount to be paid to his

(C.B.S.E., 2011-A1-C - modified)

executors.

[Ans. Due to Executors 43,290]

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