Vijayan, Sudhan and Suman are partners who share profits and losses in their capital ratio. Their balance sheet as on 31.12.2018 is as follows
Balance Sheet as on 31.12.2018
|
Liabilities
|
Rs. |
Rs. |
Asset |
Rs. |
| Capital accounts: |
|
|
Building |
80,000 |
| Vijayan |
70,000 |
|
Stock |
45,000 |
| Sudhan |
50,000 |
|
Debtors |
25,000 |
| Suman |
20,000 |
1,50,000 |
Cash at bank |
20,000 |
| General reserve |
|
18,000 |
Cash in hand |
15,000 |
| creditors |
|
17,000 |
|
|
| |
|
1,85,000 |
|
1,85,000 |
Suman died on 31.3.2019. On the death of Suman, the following adjustments are made:
(i) Building is to be valued at Rs. 1,00,000
(ii) Stock to be depreciated by Rs. 5,000
(iii) Goodwill of the firm is valued at Rs. 36,000
(iv) Share of profit 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 2016, 2017 and 2018 were Rs. 40,000, Rs. 50,000 and Rs. 30,000 respectively.
Prepare the necessary ledger accounts and the balance sheet immediately after the death of Suman.
