Pranav, Karan and Rahim were partners in a firm sharing profits and lo

1.	Pranav, Karan and Rahim were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 31st March, 2017, their Balance Sheet was as follows : BALANCE SHEET OF PRANAV, KARAN AND RAHIM as on 31st March, 2017 LiabilitiesAmount AssetsAmount(Rs)(Rs)Creditors3,00,000Fixed Assets4,50,000General Reserve1,50,000Sotck1,50,000Capitals :Debtors2,00,000 Pranav2,00,000Bank1,50,000 Karan2,00,000 Rahim1,00,000 Total9,50,000 Total9,50,000 Karan died on 12-6-2017. Accoring to the partnership deed, the legal representatives of the deceased partner were entitled to the following: (i) Balance in his Capital Account. (ii) Interest on his Capital 12% p.a. (iii) Share of goodwill. Goodwill of the firm on Karan's death was valued at Rs 60,000. (iv) Share in the profits of the firm till the date of his death, calculated on the basis of last year's profit. The profit of the firm for the year ended 31-3-2017 was Rs 5,00,000. Prepare Karan's Capital Account to be presented to his representatives.
Answer» Pranav, Karan and Rahim were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 31st March, 2017, their Balance Sheet was as follows : BALANCE SHEET OF PRANAV, KARAN AND RAHIM as on 31st March, 2017 $\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Creditors & 3, 00, 000 & Fixed Assets & 4, 50, 000 General Reserve & 1, 50, 000 & Sotck & 1, 50, 000 Capitals : & Debtors & 2, 00, 000 Pranav & 2, 00, 000 & Bank & 1, 50, 000 Karan & 2, 00, 000 Rahim & 1, 00, 000 Total & 9, 50, 000 & Total & 9, 50, 000 \end{matrix}$ Karan died on 12-6-2017. Accoring to the partnership deed, the legal representatives of the deceased partner were entitled to the following: (i) Balance in his Capital Account. (ii) Interest on his Capital 12% p.a. (iii) Share of goodwill. Goodwill of the firm on Karan's death was valued at Rs 60,000. (iv) Share in the profits of the firm till the date of his death, calculated on the basis of last year's profit. The profit of the firm for the year ended 31-3-2017 was Rs 5,00,000. Prepare Karan's Capital Account to be presented to his representatives.

Pranav, Karan and Rahim were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 31st March, 2017, their Balance Sheet was as follows : BALANCE SHEET OF PRANAV, KARAN AND RAHIM as on 31st March, 2017 LiabilitiesAmount AssetsAmount(Rs)(Rs)Creditors3,00,000Fixed Assets4,50,000General Reserve1,50,000Sotck1,50,000Capitals :Debtors2,00,000 Pranav2,00,000Bank1,50,000 Karan2,00,000 Rahim1,00,000 Total9,50,000 Total9,50,000 Karan died on 12-6-2017. Accoring to the partnership deed, the legal representatives of the deceased partner were entitled to the following: (i) Balance in his Capital Account. (ii) Interest on his Capital 12% p.a. (iii) Share of goodwill. Goodwill of the firm on Karan's death was valued at Rs 60,000. (iv) Share in the profits of the firm till the date of his death, calculated on the basis of last year's profit. The profit of the firm for the year ended 31-3-2017 was Rs 5,00,000. Prepare Karan's Capital Account to be presented to his representatives.

Answer»

Pranav, Karan and Rahim were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 31st March, 2017, their Balance Sheet was as follows :

BALANCE SHEET OF PRANAV, KARAN AND RAHIM
as on 31st March, 2017
$\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Creditors & 3, 00, 000 & Fixed Assets & 4, 50, 000 General Reserve & 1, 50, 000 & Sotck & 1, 50, 000 Capitals : & Debtors & 2, 00, 000 Pranav & 2, 00, 000 & Bank & 1, 50, 000 Karan & 2, 00, 000 Rahim & 1, 00, 000 Total & 9, 50, 000 & Total & 9, 50, 000 \end{matrix}$

Karan died on 12-6-2017. Accoring to the partnership deed, the legal representatives of the deceased partner were entitled to the following:

(i) Balance in his Capital Account.

(ii) Interest on his Capital 12% p.a.

(iii) Share of goodwill. Goodwill of the firm on Karan's death was valued at Rs 60,000.

(iv) Share in the profits of the firm till the date of his death, calculated on the basis of last year's profit. The profit of the firm for the year ended 31-3-2017 was Rs 5,00,000.

Prepare Karan's Capital Account to be presented to his representatives.

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