Ram, Krishna and Mohan are partners in a firm, sharing profits and losses m the ratio of 3 : 5 : 2. On 31st March, 2014, their Balance Sheet was as under :
Krishna died on 30th September, 2014. An agreement was reached amongst Ram. Mohan and Krishna’s legal representative that:
(a) Goodwill to be valued at 2 years purchase of the average profits of the previous three years, which were:
(b) Trade marks to be revalued at ₹ 19.200; plant at 80% of its book value and land building at ₹ 57,600.
(c) Krishna’s share of profit to the date of his death to be calculated on the basis of previous year’s profit.
(d) Interest on capital to be provided @ 10% per annum.
(e) ₹ 60,080 to be paid in cash to Krishna’s legal representative and balance to be transferred to the legal representative’s loan account.
You are required to prepare:
(i) Revaluation Account
(ii) Krishna’s Capital Account
(iii) Krishna’s Legal Representative’Account
