+ Fit to page D Page view A Read aloud 9.7 Salman, Kaleem and Arshad are partners of a firm (ABC LLC) that dealing construction material, renting heavy machines, cranes and equipment's Their business is growing and they are getting good clients for new business. The business structure is well defined and making good profit but sudden demise of Salman everything becomes difficult for them. Salman wife appointed his legal representatives to receive his share. Sharing profit and losses in the ratio of 7:2:1. Kaleem and Arshad collect the information of Assets, Liabilities and capital are below but some information are missing ABC LLC Ledger Balances As on 30th April 2020 Name Of Accounts OMR Name Of Accounts OMR Cash at Bank 31,740 Arshad Capital 51,750 Sundry Debtors 23,460 Kaleem Capital 86,250 Stock 34,500 Salman Capital 103,500 Truck 24,840 Profit and Loss A/C 20,700 Sundry Creditors ? Equipment 103,500 Land 69,000 a. Mr. Salman died on 30th April 2020. The legal representative of the deceased partner entitled to receive his share after the following adjustments. Goodwill be valued at 2 year's purchase of the average profit of the last four years, Which were 2016 OMR37,500; 2017 OMR35,000; 2018 OMR45,000; 2019 OMR42,500. b. The assets are to be valued as, Equipment be valued at OMR 95,000 and Truck at OMR19.000 Activa Pug Page Mew Read a b. The assets are to be valued as, Equipment be valued at OMR 95,000 and Truck at OMR19,000. c. Land to be appreciated by 20% d. Provision for doubtful debts to be made at 6% on debtor Creditor includes OMR 500 no longer payable and this sum was to be written off. f. investments of R.O 10,000 are brought into books. g. For the purpose of calculating Salman's share in the profit of 2020, the profit in 2020 should be taken to have been earned on the same as in 2019. h. A sum of OMR.19,000 is to be paid immediately to the executors of Salman and the balance transferred to his loan account. You are required to pass necessary Journal entries with narrations to record the above transactions, prepare the Revaluation Account and Salman executors account. (2+1+2 = 5 Marks) Page 8 of 11