Following is the Balance Sheet of Ravi, Navin and Sudhir as on 31st Ma

1.	Following is the Balance Sheet of Ravi, Navin and Sudhir as on 31st March, 2015. Their profit sharing ratio is 2 : 2 : 1. LiabilitiesAmountAssetsAmount(Rs)(Rs)Creditors24,000Bank36,000Bills Payable16,000Stock28,000General Reserve12,000Debtors16,000Capital Accounts :Land and Building2,00,000 Ravi1,20,000Profit and Loss A/c64,000 Navin1,20,000 Sudhir52,000––––––––2,92,000––––––––––3,44,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,44,000 Navin died on 30th June 2015. The partnership deep provided for the following on the death of partner. (i) Goodwill of the firm was valued at 2 years' purchase of the average profit of the last 5 years. The profit for the year ended 31st March, 2014; 31st March, 2013; 31st March 2012 and 31st March, 2011 were Rs 20,000; Rs 32,000; Rs 44,000 and Rs 88,000 respectively. (ii) Navin's share of profit or loss till the date of his death was to be calculated on the basis of profit or loss for the year ended 31st March 2015. Prepare Navin's Capital Account till the time of his death to be presented to his executors.
Answer» Following is the Balance Sheet of Ravi, Navin and Sudhir as on 31st March, 2015. Their profit sharing ratio is 2 : 2 : 1. $\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Creditors & 24, 000 & Bank & 36, 000 Bills Payable & 16, 000 & Stock & 28, 000 General Reserve & 12, 000 & Debtors & 16, 000 Capital Accounts : & Land and Building & 2, 00, 000 Ravi & 1, 20, 000 & Profit and Loss A/c & 64, 000 Navin & 1, 20, 000 Sudhir & 52, 000 - ------ - & 2, 92, 000 - -------- - 3, 44, 000 & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 3, 44, 000 \end{matrix}$ Navin died on 30th June 2015. The partnership deep provided for the following on the death of partner. (i) Goodwill of the firm was valued at 2 years' purchase of the average profit of the last 5 years. The profit for the year ended 31st March, 2014; 31st March, 2013; 31st March 2012 and 31st March, 2011 were Rs 20,000; Rs 32,000; Rs 44,000 and Rs 88,000 respectively. (ii) Navin's share of profit or loss till the date of his death was to be calculated on the basis of profit or loss for the year ended 31st March 2015. Prepare Navin's Capital Account till the time of his death to be presented to his executors.

Following is the Balance Sheet of Ravi, Navin and Sudhir as on 31st March, 2015. Their profit sharing ratio is 2 : 2 : 1. LiabilitiesAmountAssetsAmount(Rs)(Rs)Creditors24,000Bank36,000Bills Payable16,000Stock28,000General Reserve12,000Debtors16,000Capital Accounts :Land and Building2,00,000 Ravi1,20,000Profit and Loss A/c64,000 Navin1,20,000 Sudhir52,000––––––––2,92,000––––––––––3,44,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,44,000 Navin died on 30th June 2015. The partnership deep provided for the following on the death of partner. (i) Goodwill of the firm was valued at 2 years' purchase of the average profit of the last 5 years. The profit for the year ended 31st March, 2014; 31st March, 2013; 31st March 2012 and 31st March, 2011 were Rs 20,000; Rs 32,000; Rs 44,000 and Rs 88,000 respectively. (ii) Navin's share of profit or loss till the date of his death was to be calculated on the basis of profit or loss for the year ended 31st March 2015. Prepare Navin's Capital Account till the time of his death to be presented to his executors.

Answer»

Following is the Balance Sheet of Ravi, Navin and Sudhir as on 31st March, 2015. Their profit sharing ratio is 2 : 2 : 1.
$\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Creditors & 24, 000 & Bank & 36, 000 Bills Payable & 16, 000 & Stock & 28, 000 General Reserve & 12, 000 & Debtors & 16, 000 Capital Accounts : & Land and Building & 2, 00, 000 Ravi & 1, 20, 000 & Profit and Loss A/c & 64, 000 Navin & 1, 20, 000 Sudhir & 52, 000 - ------ - & 2, 92, 000 - -------- - 3, 44, 000 & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 3, 44, 000 \end{matrix}$

Navin died on 30th June 2015. The partnership deep provided for the following on the death of partner.

(i) Goodwill of the firm was valued at 2 years' purchase of the average profit of the last 5 years. The profit for the year ended 31st March, 2014; 31st March, 2013; 31st March 2012 and 31st March, 2011 were Rs 20,000; Rs 32,000; Rs 44,000 and Rs 88,000 respectively.

(ii) Navin's share of profit or loss till the date of his death was to be calculated on the basis of profit or loss for the year ended 31st March 2015. Prepare Navin's Capital Account till the time of his death to be presented to his executors.

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