Rohit, Sachin and Virat were sharing profits and losses in the ratio of 7:5:4 respectively. Their Balance sheet as on 31st March 2017 was as follows.
Mr. Virat died on 30th June 2017 and the following adjustments were agreed as per deed.
1. Stock, Furniture and Land and Building are to be revalued at ₹16, 700, ₹16,200, ₹30,100 respectively.
2 Virat’s share in goodwill is to be valued from firm’s goodwill which was valued at three times of the average profit of last four years Profit of the last four years : I ₹30,000, II ₹25,000, III ₹25,000, IV ₹40,000
3. His Profit up to the death is to be calculated on the basis of profit of last year.
4. Virat was entitled to get a Salary of ₹1200 per month.
5. Interest on capital at 10% paid to be allowed
6. Virat’s drawing up to the date of death was ₹900 per month.
Prepare: Virat’s Capital Account showing amount payable to his executor.
Give working notes for share of Goodwill and Profit.
