Ajay, Sanjay and Vijay were partners sharing profits and losses in the proportion to their capital. Their Balance Sheet as on 31st March 2019 was as follows.
Vijay died on 1st August 2019 and the following adjustments were made.
1. Assets to be revalued as under Land & Building ₹88,000, Motor Lorry ₹36,000 and Furniture ` 34,000
2. All Debtors were good.
3. Goodwill of the firm valued at two times the average profit of the last 4 years profit.
4. Vijay’s share of profit to be calculated on the basis of average profit of last three years.
5. Profit for 4 years were 1st year ₹12,000, 2nd year ₹24,000, 3rd year ₹14,000, 4th year ₹22,000
Prepare:
1. Vijay’s Capital Account, showing amount payable to his executor.
2. Give working of Vijay’s share of Goodwill and profit upto the date of his death.