$A,B$ and C are partners sharing profits in the proportion of one $-$ half, one $-$ fourth and one $-$ fourth respectively. Their Balance Sheet on ${31}^{st}$ December, $1991$ was as follows.

$\backslash$table$[[,$Rs$,,,$Rs$],[$Sundry Creditors,$4,000,$Cash,$1,000,],[$A$\text{'}$s Capital,$10,000,$Sundry Debtors,$4,500,],[$B$\text{'}$s Capital,$6,000,$Stock$-$in$-$Trade,$5,500,],[$C$\text{'}$s Capital,$4,000,$Loan to A$,3,000,],[,,$Freehold premises,$10,000,],[,24,000,,24,000,]]$

A died on $1^{st}$ January, $1992.$ The firm had affected an assurance of Rs $10,000$ on the joint lives of the three partners and the amount of the policy was realised on $1^{st}$Feb,$1992.$ According to the partnership agreement, the goodwill was to be calculated at two years' purchase of average profits of three completed years preceding the death or retirement of a partner. The deceased partners' share of capital and goodwill etc, was Paid out in cash on $1^{st}$ March, $1992,$ the available cash balance being supplemented by a loan from firm's banker on the security of the freehold property. The net profits of the years $1989,1990,$ and $1991$ were Rs $5,500,$ Rs $4,800$ and Rs $6,500$ respectively.

You are required to show the ledger accounts of the partners and the Balance Sheet of $B$ and $C$ as it would stand after A$\text{'}$s share is paid out.

Answer: $-$ Capital balance B Rs $5,700,$ C Rs $3,700.$ Amount payable to A$\text{'}$s executors Rs $16,600,$ Balance Sheet Rs $20,000.$

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$A,B$ and C are partners sharing profits in the proportion of one $-$ half, one $-$ fourth and one $-$ fourth respectively. Their Balance Sheet on ${31}^{st}$ December, $1991$ was as follows:

$\backslash$table$[[,$Rs$,,$Rs$],[$Sundry Creditors,$4,000,$Cash,$1,000],[$A$\text{'}$s Capital,$10,000,$Sundry Debtors,$4,500],[$B$\text{'}$s Capital,$6,000,$Stock in$-$Trade,$5,500],[$C$\text{'}$s Capital,$4,000,$Loan to A$,3,000],[,,$Freehold premises,$10,000],[,24,000,,24,000]]$

A died on $1^{st}$ January, $1992.$ The firm had affected an assurance of Rs $10,000$ on the joint lives of the three partners and the amount of the policy was realised on $1^{st}$ Feb, $1992.$ According to the partnership agreement, the goodwill was to be calculated at two years' purchase of average profits of three completed years preceding the death or retirement of a partner. The deceased partners' share of capital and goodwill etc, was Paid out in cash on $1^{st}$ March, $1992,$ the available cash balance being supplemented by a loan from firm's banker on the security of the freehold property. The net profits of the years $1989,1990,$ and $1991$ were Rs $5,500,$ Rs $4,800$ and Rs $6,500$ respectively. You are required to show the ledger accounts of the partners and the Balance Sheet of B and C as it would stand after A$\text{'}$s share is paid out.

Answer: $-$ Capital balance B Rs $5,700,$ C Rs $3,700,$ Amount payable to A$\text{'}$s executors Rs $16,600,$ Balance Sheet Rs $20,000.$