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19.X, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2 : 1. 6 On 31st March, 2018, their Balance Sheet was as follows: Liabilities Amount (₹) Assets Amount (₹) Trade Creditors 1,20,000 Cash at Bank 1,80,000 Bills Payable 80,000 Stock 1,40,000 General Reserve 60,000 Sundry Debtors 80,000 Capital A/cs: Building 3,00,000 X 7,00,000 Advance to Y 7,00,000 Y 7,00,000 Profit and Loss A/c 3,20,000 Z 60,000 14,60,000 17,20,000 17,20,000 Y died on 30th June, 2018. The Partnership Deed provided for the following on the death of a partner: (i) Goodwill of the business was to be calculated on the basis of 2 times the average profit of the past 5 years. Profits for the years ended 31st March, 2018, 31st March, 2017, 31st March, 2016, 31st March, 2015 and 31st March, 2014 were ₹ 3,20,000 (Loss); ₹ 1,00,000; ₹ 1,60,000; ₹ 2,20,000 and ₹ 4,40,000 respectively. (ii) Y's share of profit or loss from 1st April, 2018 till his death was to be calculated on the basis of the profit or loss for the year ended 31st March, 2018. [Type here] You are required to calculate the following: (a) Goodwill of the firm and Y's share of goodwill at the time of his death. (b) Y's share in the profit or loss of the firm till the date of his death. (c) Prepare Y's Capital Account at the time of his death to be presented to his executors.

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Working Notes:

= Rs 32,000

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