Following is the Balance sheet of Punita, Rashi and Seema who are sharing profits in the ratio2:1:2 as on 31stMarch, 2013.Liabilities Rs. Assets Rs.CreditorsBill PayablePunita’s capitalRashi’s capitalSeema’s capital38,0002,0001,44,00092,0001,24,0004,00,000BuildingsStockDebtorsCash at bankProfit and Loss2,40,00065,00030,0005,00060,0004,00,000 Punita died on 30th September 2013.

Q-1Following is the Balance sheet of Punita, Rashi and Seema who are sharing profits in the ratio2:1:2 as on 31stMarch, 2013.Liabilities Rs. Assets Rs.CreditorsBill PayablePunita’s capitalRashi’s capitalSeema’s capital38,0002,0001,44,00092,0001,24,0004,00,000BuildingsStockDebtorsCash at bankProfit and Loss2,40,00065,00030,0005,00060,0004,00,000 Punita died on 30th September 2013. She had withdrawn Rs 40000 from her capital on 1 July2013.According to the partnership agreement, she was entitled to interest on capital @ 8% p.a. Her share of Profittill the date of death was to be calculated on the basis of the average profits of the last three years. Goodwill was tobe calculated on the basis of Three times of the average profits of the last four years. The profit for the year ended2009-10, 2010-11 and 2011-12 were Rs 30000,70000 and 80000 respectively.Pass Necessary Journal Entries.

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