Ramesh, Ravi and Akash are partners who share profits and losses in their capital ratio. Their balance sheet as on 31.12.2017 is as follows:
Balance Sheet as on 31st December, 2017
| Liabilities |
Rs. |
Rs. |
Asset |
Rs. |
Rs. |
| Capital accounts: |
|
|
Plant and machinery |
|
45,000 |
| Ramesh |
30,000 |
|
Stock |
|
22,000 |
| Ravi |
30,000 |
|
Debtors |
|
15,000 |
| Akash |
20,000 |
80,000 |
Cash at bank |
|
10,000 |
| General reserve |
|
8,000 |
Cash in hand |
|
4,000 |
| Creditors |
|
8,000 |
|
|
|
| |
|
96,000 |
|
|
96,000 |
Akash died on 31.3.2018. On the death of Akash, the following adjustments are made:
(i) Plant and machinery is to be valued at Rs. 54,000
(ii) Stock is to be depreciated by Rs. 1,000
(iii) Goodwill of the firm is valued at Rs. 24,000
(iv) Share of profit of Akash is to be calculated from the closing of the last financial year to the date of death on the basis of the average of the three completed years’ profit before death. Profit for 2015, 2016 and 2017 were Rs. 66,000, Rs. 60,000 and Rs. 66,000 respectively.
Prepare the necessary ledger accounts and the balance sheet immediately after the death of Akash.
