Corporate Accounting 1

0.7. Saleem, Kareem and Asif are partners of a firm (Golden trading LLC) that deals in office furniture and office equipment's like computers, desk, cabinets, CCTVS, etc. Everything is going well and they have won various contacts in different institution and corporates including government and private sectors. But all of sudden Kareem has passed away. Kareem's wife has been appointed as his legal representatives to receive his share. Sharing profit and losses in the ratio of 3:52. Their Balance are below but some of ledger balances are missing: Golden Trading LLC Ledger Balances As on 30 April 2020 Name of Accounts Cash at Bank Sundry Debtors Stock Building Equipment Sundry Creditors OMR Name of Accounts 37,136 Saleem Capital 27,448 Kareem Capital 40,365 Asif Capital B0,730 General Reserve A/C 121,095 Furniture and Fixture 24,219 OMR 125,939 100,913 ? 20.990 29,063 Mr. Kareem died end of April 2020. The legal representative of the deceased partner entitled to receive his share after the following adjustments. a. Goodwill be valued at 4 year's purchase of the average profit of the last four years, Which were 2016 OMR 35,500, 2017 OMR 40,000, 2018 OMR 43,000; 2019 OMR 47,500 b. Building to be appreciated by OMR 90,500. C. Provision for doubtful debts to be made at 5% on debtor d. The assets are to be valued as, Furniture and Fixture at OMR 20,000 and Equipment be valued at OMR 110,000 e. For the purpose of calculating Kareem's share in the profit of 2020, the profit in 2020 should be taken to have been earned on the same as in 2019 1. A sum of OMR 30 000 is to be paid immediately to the executors of Saleem and the balance transferred to his loan account You are required to pass necessary lournal entries with narrations to record the above transactions, prepare the Revaluation Account and Kareem executors account. (2+1+2=5 Marks)