| Books of Prateek, Rockey and Kushal | |
| Balance Sheet as on March 31, 2017 | |
| Liabilities | Amount Rs | Assets | Amount Rs |
| Sundry Creditors | 16,000 | Bills Receivable | 16,000 |
| General Reserve | 16,000 | Furniture | 22,600 |
| Capital Accounts: | | Stock | 20,400 |
| Prateek | 30,000 | | Sundry Debtors | 22,000 |
| Rockey | 20,000 | | Cash at Bank | 18,000 |
| Kushal | 20,000 | 70,000 | Cash in Hand | 3,000 |
| | 1,02,000 | | 1,02,000 |
| | | | |
Rockey died on June 30, 2017. Under the terms of the partnership deed, the executors of a deceased partner were entitled to:
a) Amount standing to the credit of the Partner’s Capital account.
b) Interest on capital at 5% per annum.
c) Share of goodwill on the basis of twice the average of the past three years’ profit and
d) Share of profit from the closing date of the last financial year to the date of death on the basis of last year’s profit.
Profits for the year ending on March 31, 2015, March 31, 2016 and March 31, 2017 were Rs 12,000, Rs 16,000 and Rs 14,000 respectively. Profits were shared in the ratio of capitals.
Pass the necessary journal entries and draw up Rockey’s capital account to be rendered to his executor.