Dhiraj, Suraj and Leena were partners sharing profits and losses in the ratio 2 : 1 : 1 respectively. Their Balance Sheet as on 31st March, 2022 was as under:Balance Sheet as on 31st March, 2022LiabilitiesAmount (₹)AssetsAmount (₹)Capital Accounts:St…

Answer: Leena’s share of goodwill ₹ 22,500; share of profit upto death ₹ 2,500; amount due to Leena’s executors ₹ 41,600.

(b) Leena’s share of goodwill

• Average profit = (30,000 + 25,000 + 25,000 + 40,000) ÷ 4 = 1,20,000 ÷ 4 = ₹ 30,000.
• Goodwill of the firm = 30,000 × 3 years’ purchase = ₹ 90,000.
• Leena’s share = 90,000 × 1/4 = ₹ 22,500. It is debited to the continuing partners in their gain ratio 2 : 1: Dhiraj ₹ 15,000, Suraj ₹ 7,500.

(c) Leena’s share of profit upto the date of death

• Period from 1st April to 30th June, 2022 = 3 months.
• Profit of last year = ₹ 40,000. Profit for 3 months = 40,000 × 3/12 = ₹ 10,000.
• Leena’s share = 10,000 × 1/4 = ₹ 2,500 (debited to Profit and Loss Suspense A/c).

Other working notes

• Revaluation: Stock loss ₹ 300, Furniture loss ₹ 1,800, Land and Building gain ₹ 14,100. Net profit ₹ 12,000; Leena’s 1/4 = ₹ 3,000.
• General Reserve ₹ 16,000 × 1/4 = ₹ 4,000.
• Interest on capital = 12,000 × 10/100 × 3/12 = ₹ 300.

(a) Leena’s Capital Account

OR: Classification / types of accounting packages

Accounting packages (accounting software) are classified into three types:

1. Ready-to-use software: General-purpose packages made for a large number of users and sold off the shelf (for example, popular packages used by small traders). They are cheap, easy to install and use, need little training and come with standard features such as voucher entry, ledgers and final accounts. They suit small businesses with simple and conventional accounting needs, but cannot be changed much to suit special requirements, and data security is lower.
2. Customised software: A standard package that is modified (customised) to suit the special requirements of a particular user, for example adding features for inventory, billing or payroll. It costs more than ready-to-use software and needs more training. It suits medium and large businesses whose needs are partly met by a standard package, and it can be linked to other information systems of the business.
3. Tailor-made software: Software developed specially for one organisation to meet its exact requirements, usually for large businesses with many users and locations. It is the costliest, needs specially trained users and has a high level of secrecy and data security. It can be integrated with the other information systems of the organisation.

Thus the choice depends on the size of the business, nature of its needs, cost, training required and the level of data security needed.