A, B and C are partners in a firm sharing profits in the proportion of 3 : 2 : 1. Their Balance Sheet as at 31st March, 2018 stood as follows:
B **** on 30th June, 2018 and according to the deed of the said partnership his executors are entitled to be paid as under:
(a) The capital to his credit at the time of his ***** and interest thereon @ 10% per annum.
(b) His proportionate share of General Reserve.
(c) His share of profits from the intervening ** will be based on the sales during that **. Sales from 1st April, 2018 to 30th June, 2018 were as Rs. 12,00,000. The rate of profit during past three years had been 10% on sales.
(d) Goodwill according to his share of profit to be calculated by taking twice the amount of profits of the last three years less 20%. The profit of the previous three years were: 1st Year: Rs. 82,000; 2nd year: Rs. 90,000; 3rd year: Rs. 98,000.
(e) The investments were sold at par and his executors were paid out in full. Prepare B’* Capital Account and his Executors Account.
