Question
S,H and R are partners in a firm. Their Balance Sheet as on December 31st, 2005 is as follow: Assets R.O Liabilities R.O Plant and
S,H and R are partners in a firm. Their Balance Sheet as on December 31st, 2005 is as follow:
Assets | R.O | Liabilities | R.O |
Plant and Machinery Furniture and fittings Debtors Stock Investment
| 40,000 5,000 30,000 21,000 24,000 | Creditors General reserve Capitals: S: 40,000 H: 30,000 R: 10,000
| 20,000 20,000
80,000 |
Total | 120,000 | Total | 120,000 |
H died on 30th June ,2006. The partnership provides that the representative of the deceased partner shall be entitled to:
Balance of the capital account of the deceases partner
Interest on capital at 8% p.a. up to date of death.
His share of profits up to date of death on the average of last 3 years profit.
His share of any undistributed profits and losses as per last balance Sheet.
Profits for the last 3 years was R.O 30,000, R.O 40,000 and R.O 50,000.
Determine the amount payable to the legal representative of H.
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