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Mlustration 18 A, B and C have been in business partnership for some years, Sharing Profit in the proportions of 4:33. The balances in the books of the firm as on 31 st March, 2022 subject to final Adjustment, were as under: (a) Profits for three years, before charging parthers' interest were: 201819; 3,36,000,201920:3,78,000 and 2020-21: 3,60,000 respectively. (b) The independent valuation at the date of death revealed: Land and Buildings 3,00,000 and Furniture and Fixtures 30,000. (c) A fair remuneration for each of the Partners would be 75,000 P.A. and that the Capital employed in business to be taken as 7,80,000 throughout. It was agreed among the Partners that: (i) Goodwill was not to be shown as an asset of the firm as on 31.03 .2022 . Therefore, adjustment for goodwill was to be made in Capital Accounts. (ii) A and B would share equally from the date of death of C. (iii) Depreciation on revised value of assets would be ignored. You are required to prepare: (i) Revaluation Account (ii) Partners' Capital Accounts (iii) Partners' Current Accounts (iv) C's Heir Account (v) Balance Sheet as on 31.03.2022 C died on 30.09.2021. The Partnership deed provided that: (1) Interest was to be credited on Capital accounts of partners at 10% P.A. on the balance at the beginning of the year. (2) On the death of a Partner: (i) Goodwill was to be valued at three years' purchase of average Annual Profits of three years up to the date of death, after deducting interest on Capital Employed at 8%P;A. and a fair remuneration for each of the partners; (ii) Fixed Assets were to be valued by an independent valuer and all other assets and liabilities to be taken at Book Value. (3) Wherever necessary, profit or loss should be apportioned on a time basis. (4) The amount due to the deceased partner's Sole Heir was to receive interest @ 12\% P.A. from the date of death until paid. It was ascertained that: (a) Profits for three years, before charging partners' interest were: 201819;3,36,000,201920:3,78,000 and 2020-21: 3,60,000 respectively. (b) The independent valuation at the date of death revealed: Land and Buildings 3,00,000 and Furniture and Fixtures 30,000. Mlustration 18 A, B and C have been in business partnership for some years, Sharing Profit in the proportions of 4:33. The balances in the books of the firm as on 31 st March, 2022 subject to final Adjustment, were as under: (a) Profits for three years, before charging parthers' interest were: 201819; 3,36,000,201920:3,78,000 and 2020-21: 3,60,000 respectively. (b) The independent valuation at the date of death revealed: Land and Buildings 3,00,000 and Furniture and Fixtures 30,000. (c) A fair remuneration for each of the Partners would be 75,000 P.A. and that the Capital employed in business to be taken as 7,80,000 throughout. It was agreed among the Partners that: (i) Goodwill was not to be shown as an asset of the firm as on 31.03 .2022 . Therefore, adjustment for goodwill was to be made in Capital Accounts. (ii) A and B would share equally from the date of death of C. (iii) Depreciation on revised value of assets would be ignored. You are required to prepare: (i) Revaluation Account (ii) Partners' Capital Accounts (iii) Partners' Current Accounts (iv) C's Heir Account (v) Balance Sheet as on 31.03.2022 C died on 30.09.2021. The Partnership deed provided that: (1) Interest was to be credited on Capital accounts of partners at 10% P.A. on the balance at the beginning of the year. (2) On the death of a Partner: (i) Goodwill was to be valued at three years' purchase of average Annual Profits of three years up to the date of death, after deducting interest on Capital Employed at 8%P;A. and a fair remuneration for each of the partners; (ii) Fixed Assets were to be valued by an independent valuer and all other assets and liabilities to be taken at Book Value. (3) Wherever necessary, profit or loss should be apportioned on a time basis. (4) The amount due to the deceased partner's Sole Heir was to receive interest @ 12\% P.A. from the date of death until paid. It was ascertained that: (a) Profits for three years, before charging partners' interest were: 201819;3,36,000,201920:3,78,000 and 2020-21: 3,60,000 respectively. (b) The independent valuation at the date of death revealed: Land and Buildings 3,00,000 and Furniture and Fixtures 30,000

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