Mahendra, Jitendra and Hitendra are in partnership sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as on 31st March 2022 was as follows:Balance Sheet as on 31st March 2022LiabilitiesAmount (₹)AssetsAmount (₹)Cap…
Q.4 Mahendra, Jitendra and Hitendra are in partnership sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as on 31st March 2022 was as follows:
Balance Sheet as on 31st March 2022
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capital Accounts: | Debtors | 90,000 | |
| Mahendra | 2,20,000 | Machinery | 85,000 |
| Jitendra | 2,10,000 | Investment | 3,50,000 |
| Hitendra | 2,40,000 | Motor Lorry | 1,00,000 |
| Creditors | 80,000 | Building | 80,000 |
| Bills Payable | 7,000 | Bank | 1,48,000 |
| General Reserve | 96,000 | ||
| 8,53,000 | 8,53,000 |
On 1st October 2022 Hitendra died and the partnership deed provided that:
- Machinery valued at ₹ 80,000 and creditors valued at ₹ 69,000.
- Profit for 2022-23 was estimated at ₹ 1,20,000. Hitendra’s share in it up to the date of his death was given to him.
- Goodwill of the firm was valued at two times the average profit of the last 5 years. Firm’s profit of the last 5 years were: I year ₹ 1,80,000, II year ₹ 1,50,000, III year ₹ 2,00,000, IV year ₹ 1,20,000, V year ₹ 2,50,000. Hitendra’s share in it was to be given to him.
- Drawings made by Hitendra up to his death is ₹ 30,000.
- Interest on drawings of Hitendra charged ₹ 2,000.
Prepare: Hitendra’s Capital Account and show working of: (i) Hitendra’s share in goodwill. (ii) Hitendra’s share in profit.
OR
State the importance of Computerised Accounting System.