Iqbal and Kapoor are in partnership sharing profits and losses 3:2. Kapoor died three months after the date of the last Balance Sheet. According to the Partnership Deed, the legal personal representatives of Kapoor are entitled to the following payments:
a. His capital as per the last Balance Sheet.
b. Interest on above capital @ 3% p.a. till the date of death.
c. His share of profits till the date of death calculated on the basis of last year’s profits.
His drawings are to bear interest at an average rate of 2% on the amount irrespective of the period. The net profits for the last three years, after charging insurance premium, were Rs.20,000; Rs.25,000 and Rs.30,000 respectively. Kapoor’s capital as per Balance Sheet was Rs.40,000 and his drawings till the date of death were Rs. 5,000. Draw Kapoor’s Account to be rendered.
