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146 Accountancy – Partnership Accounts 2. Profit and Loss (Share of Profit from the date of last Balance Sheet to the date of death) 2 1 months. 2 Rs. 64,000 2 2.5 = × × 4 5 12 = Rs. 1,333 3. Interest on Capital = Rs. 25,000 × 12 × 2.5 100 12 = Rs. 625 Do it Yourself On December 31, 2015, the Balance Sheet of Pinki, Qureshi and Rakesh showed as under : Balance Sheet as on December 2015 Liabilities Amount Assets Amount (Rs.) (Rs.) General Reserve 20,000 Buildings 26,000 Capitals: Investments 15,000 Pinki 15,000   Debtors 15,000 Qureshi 10,000 Bills Receivables 6,000 Rakesh 10,000 35,000 Stock 12,000 Sundry Creditors 25,000 Cash 6,000 80,000 80,000 The partnership deed provides that the profit be shared in the ratio of 2:1:1 and that in the event of death of a partner, his executors be entitled to be paid out : (a) The capital of his credit at the date of last Balance Sheet. (b) His proportion of reserves at the date of last Balance Sheet. (c) His proportion of profits to the date of death based on the average profits of the last three completed years, plus 10%, and (d) By way of goodwill, his proportion of the total profits for the three preceding years. The net profit for the last three years were : (Rs.) 2013 16,000 2014 16,000 2015 15,400 Rakesh died on April 1, 2015. He had withdrawn Rs.5,000 to the date of his death. The investment were sold at par and R’s Executors were paid off. Prepare Rakesh’s Capital Account that of his executors. Reprint 2026-27