| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital A/c : | Buildings | 2,00,000 | |
| Virad – 3,00,000 | Machinery | 3,00,000 | |
| Vishad – 2,50,000 | Patents | 1,10,000 | |
| Roma – 1,50,000 | 7,00,000 | Stock | 1,00,000 |
| Reserve Fund | 60,000 | Debtors | 80,000 |
| Creditors | 1,10,000 | Cash | 80,000 |
| 8,70,000 | 8,70,000 |
Virad died on 1st October, 2013. It was agreed between his executors and the remaining partners that:
(i) Goodwill of the firm be valued at 212 years purchase of average profits for the last three years. The average profits were Rs. 1,50,000.
(ii) Interest on capital be provided at 10% p.a.
(iii) Profits for the 2013-14 be taken as having accrued at the same rate as that of the previous year which was Rs. 1,50,000.
Prepare Virad’s Capital Account to be presented to his Executors as on 1st October, 2013.
SOLUTION
