P, Q & R were partners sharing profits and losses in the ratio of 5:3:2. On 31st Dec. 2012 their Balance Sheet stood as follows: BALANCE SHEET as at 31.12.2012 Liabilities $ Assets 1,40,000 1,40,000 17,500 5,25,000 3,50,000 2,62,500 87,500 15,22,500 Sundry Creditors General Reserve Capitals - Cash at Bank Debtors Stock Machinery Building 1,92,500 1,05,000 5,25,000 4,37,500 2.62,500 12,25,000 Q Patents Goodwill 15,22,500 R died on 31s' March 2013, the following adjustments were made: (a) Goodwill be valued at 2½ years' purchase of the average profits of last four years, The profits for the last four years were as under: 2009 – $ 2,27,000; 2010 – $ 2,10,000; 2011 - $ 2,80,000; 2012 – $ 2,60,000 (b) Machinery be valued at $ 2,90,000; Patents be valued at $ 4,97,500; Building be valued at $ 4,37,500. (c) For the purpose of calculating R's share in the profits, profits of 2013 should be taken to have accrued on the basis of profits of 2012. Calculate the amount payable to the executors of the deceased partner. POR

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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P, Q & R were partners sharing profits and
losses in the ratio of 5:3:2. On 31st Dec. 2012 their Balance Sheet stood as follows:
BALANCE SHEET
as at 31.12.2012
Liabilities
$| Assets
$
1,40,000
1,40,000
17,500
5,25,000
3,50,000
2,62,500
87,500
15,22,500
Sundry Creditors
General Reserve
Capitals -
1,92,500
1,05,000
Cash at Bank
Debtors
Stock
5,25,000
4,37,500
2.62,500 12,25,000
Machinery
Building
Q
Patents
Goodwill
15,22,500
R died on 31s' March 2013, the following adjustments were made:
(a) Goodwill be valued at 2½ years' purchase of the average profits of last four years,
The profits for the last four years were as under:
2009 – $ 2,27,000; 2010 – $ 2,10,000; 2011 - $ 2,80,000; 2012 – $ 2,60,000
(b) Machinery be valued at $ 2,90,000; Patents be valued at $ 4,97,500; Building be
valued at $ 4,37,500.
(c) For the purpose of calculating R's share in the profits, profits of 2013 should be
taken to have accrued on the basis of profits of 2012.
Calculate the amount payable to the executors of the deceased partner.
POR
Transcribed Image Text:P, Q & R were partners sharing profits and losses in the ratio of 5:3:2. On 31st Dec. 2012 their Balance Sheet stood as follows: BALANCE SHEET as at 31.12.2012 Liabilities $| Assets $ 1,40,000 1,40,000 17,500 5,25,000 3,50,000 2,62,500 87,500 15,22,500 Sundry Creditors General Reserve Capitals - 1,92,500 1,05,000 Cash at Bank Debtors Stock 5,25,000 4,37,500 2.62,500 12,25,000 Machinery Building Q Patents Goodwill 15,22,500 R died on 31s' March 2013, the following adjustments were made: (a) Goodwill be valued at 2½ years' purchase of the average profits of last four years, The profits for the last four years were as under: 2009 – $ 2,27,000; 2010 – $ 2,10,000; 2011 - $ 2,80,000; 2012 – $ 2,60,000 (b) Machinery be valued at $ 2,90,000; Patents be valued at $ 4,97,500; Building be valued at $ 4,37,500. (c) For the purpose of calculating R's share in the profits, profits of 2013 should be taken to have accrued on the basis of profits of 2012. Calculate the amount payable to the executors of the deceased partner. POR
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