Sandeep, Maheep and Amandeep were partners in a firm sharing profits in the ratio of 2: 2: 1. The firm closes its books on 31st March every year. On 30th June, 2020Maheepdied. The partnership deed provided that on the death of a partner his executors will be entitled to the following:
a) Balance in his capital account which amounted to ₹1,15,000and interest on capital till date of death which amounted to ₹5,000. b) His share in the profits of the firm till the date of his death amounted to ₹20,000. c) His share in the goodwill of the firm. The goodwill of the firm on Maheep’s death was valued at ₹ 1,50,000. d) Loan to Maheep amounted ₹ 20,000.
It was agreed that the amount will be paid to his executor in three equal yearly instalments with interest @10% p.a. The first instalment was to be paid on 30.06.2021.
Calculate the amount to be transferred to Maheep’s executors Account and prepare the executor’s account till it is finally settled.
