Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | |
Sundry Creditors | 3,000 | Tools | 1,000 | |
Reserve Fund | 3,200 | Furniture | 8,000 | |
Capital A/cs | Stock | 6,000 | ||
Hari | 10,000 | Debtors | 6,000 | |
Ram | 5,000 | Cash at Bank | 5,000 | |
Shyam | 5,000 | 20,000 | Cash in Hand | 200 |
26,200 | 26,200 |
(i) Amount standing to the credit of his capital account. |
(ii) Interest on capital, which amounted to Rs. 62.50. |
(iii) His share of goodwill Rs. 3,500. |
(iv) His share of profit from the closing of the last financial year to the date of death, which amounted to Rs. 437.50. |
Draw up Ram's account to be rendered to his executor. |
Answer:
Dr Ram's Capital Account Cr
Working Notes 1. Ram's share of goodwill i.e. Rs. 3,500 to be distributed between Hari and Shyam in 1 : 1 ratio i.e. \[Hari\,=3,500\times \frac{1}{2}=Rs.\,1,750;\] \[Shyam\,=3,500\times \frac{1}{2}=Rs.\,1,750\] 2. Reserve Fund \[=3,200\times \frac{1}{3}=Rs.\,1,066.67\] Particulars Amt (Rs.) Particulars Amt (Rs.) To Ram?s Executor A/c 10,066,67 By Balance b/d 5,000.00 By Interest on Capital A/c 62,50 By Reserve Fund A/c 1,066.67 By Hari?s Capital A/c 1,750.00 By Shyam?s Capital A/c 1,750.00 By Profit and Loss Suspense A/c 437.50 10,066,67 10,066,67
You need to login to perform this action.
You will be redirected in
3 sec