Page 88 - AAAXII

M.82 An Aid to Accountancy—CBSE XII
(ii) Suresh’s share in the profit or loss till the date of his death was to be calculated
on the basis of the profit or loss for the year ended 31st March, 2018.
You are required to calculate the following:
(a) Goodwill of the firm and Suresh’s share of goodwill at the time of his death.
(b) Suresh’s share in the profit or loss of the firm till the date of his death.
(c) Prepare Suresh’s Capital Account at the time of his death to be presented to
his executor.
Or
A, B and C are the partners in a firm. The firm has total fixed capital of ` 6,00,000
held equally by all the partners. Under the Partnership Deed the partners were
entitled to the following:
(i) A and B to salary of ` 18,000 and ` 16,000 per month respectively.
(ii) In the event of the death of a partner, Goodwill was to be valued at 2 years’ purchase
of the average profit of the last 3 years.
(iii) Profit up to the date of the death based on the profit of the previous year.
(iv) Partners were to be charged interest on drawings @ 5% p.a. and allowed interest
on capital at 6% p.a.
B died on 1st January, 2018. His drawings till the date of death were ` 20,000 and the
interest thereon was ` 600. Profits for the last three years ended 31st March, 2015,
2016 and 2017 were: ` 2,12,000; ` 32,000 (Dr.) and ` 90,000 respectively.
Prepare B’s Capital Account to calculate the amount to be paid to his executor. (6)
15. Young India Club has been established on 1st April, 2017. Following is their Receipts
and Payments Account for the year ended 31st March, 2018:
Dr. RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018 Cr.
Receipts ` Payments `

To Entrance Fees 5,000 By Maintenance Charges 2,440
To Legacies 12,000 By Furniture 5,000
To Subscriptions 10,000 By Rent 1,000
To Sale of Old Newspapers 1,500 By Salary 4,500
To Surplus from Annual Dinner Event 1,500 By Honorarium 1,000
To Life Membership Fees 9,000 By Conveyance 500
By Books 2,000
By Balance c/d 22,560
39,000 39,000

Additional Information:
(i) Rent Outstanding ` 600.
(ii) Legacy donation is without any specific use.
(iii) Subscriptions Outstanding for the year ended 31st March, 2018 were ` 500.
(iv) Maintenance charges ` 100 were unpaid.
Prepare Income and Expenditure Account for the year ended 31st March, 2018 and
the Balance Sheet as on that date. (6)