Q.7 Sabir, Kamal and Ahmed are partners of a firm (Diamond LLC) that deals in in office equipment supply incorporate and institutions. The business was flourishing well, and profit made was very good. All the partners were trying expanding the business more, but sudden demise of Sabir created problem with the all partners and firm. Sabir wife appointed his legal representatives to receive his share. Sharing profit and losses in the ratio of 4:2:1. Due to Accountant's death it was difficult to collect all assets, liabilities and capital amount information. But at last they collect the below information but some information's missing. Diamond LLC Ledger Balance as on 31" March Name of Accounts OMR Name of Accounts OMR Cash 26,450 Sundry Creditors 17,250 Sundry Debtors Sabir's Capital 89,700 Stock 28,750 Kamal's Capital 71,875 Copyrights 20,700 Ahmed Ali's Capital 45,425 Machinery 86,250 General Reserve A/c 14,950 Building 57,500 ? Mr. Sabir died on 31" March 2020. The legal representative of the deceased partner entitled to receive his share after the following adjustments. a. Goodwill be valued at 3 year's purchase of the average profit of the last four years, Which were 2016 OMR 35,500, 2017 OMR 40,000; 2018 OMR 50,000; 2019 OMR 47,500 b. The assets are to be valued as, Machinery be valued at OMR 70,000 and Copyrights at OMR 14,000 c. Building to be appreciated by OMR 65,000. d. Creditor includes OMR 5,000 no longer payable and this sum was to be written off e. For the purpose of calculating Sabir's share in the profit of 2020, the profit in 2020 should be taken to have been earned on the same as in 2019. f. A sum of OMR.20,000 is to be paid immediately to the executors of Sabir 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 Sabir executors account. (2+1+2 = 5 Marks) Page 8 of 11