Following is the Balance Sheet of Prateek, Rockey and Kushal as on March 31, 2015. Balance Sheet of Prateek, Rockey and Kushal as on March 31, 2015
Rockey died on June 30, 2015. Under the terms of the partnership deed, the executors of a deceased partner were entitled to:
(a) Amount standing to the credit of the Partner’s Capital account.
(b) Interest on capital in 5% per annum.
(c) Share of goodwill on the basis of twice the average of the past three years’ profit and
(d) Share of profit from the closing date of the last financial year to the date of death on the basis of last year’s profit. Profits for the year ending on March 31, 2013, 2014 and 2015 were Rs. 12,000, Rs. 16,000 and Rs.14,000 respectively. Profits were shared in the ratio of capitals. Pass the necessary journal entries and draw up Rockey’s capital account to be rendered to his executor.
