Question

The Balance Sheet of Dia, Zia, Tia who were sharing profits and losses in the ratio of 1: 1 : 2 stood as follows. Tia died on 31st December 2023.

Balance Sheet as at 1st January 2024
Particulars	Amount ₹	Amount ₹	Particulars	Amount ₹
Creditors		92,000	Goodwill	8,000
Reserves		52,000	Cash at Bank	2,54,000
Capital Accounts			Stock	2,36,000
Dia	3,00,000		Fixed Assets	5,42,000
Zia	3,00,000		Deferred Advertisement
Tia	4,00,000	10,00,000	Expenditure	1,04,000
		11,44,000		11,44,000

The above Balance Sheet, though made after Tia’s Death, is incorrect.

The following things have not been accounted for:

1. The adjustment in respect of reserves and accumulated profit hasn’t been made.
2. The goodwill of the firm is valued at ₹ 80,000.
3. The share of her profit for the current year is determined at ₹ 42,000.

You are required to make the Partners’ Capital A/c.

Answer 1

Dr.	PARTNERS’ CAPITAL ACCOUNTS						Cr.
Particulars	Dia ₹	Zia ₹	Tia ₹	Particulars	Dia ₹	Zia ₹	Tia ₹
To Goodwill A/c	2,000	2,000	4,000	By Balance b/d	3,00,000	3,00,000	4,00,000
To Deferred Adv. Exp. A/c	26,000	26,000	52,000	By Reserves	13,000	13,000	26,000
To Tia's Capital A/c	20,000	20,000	—	By Dia's Capital A/c	—	—	20,000
To Tia's Executor's Loan A/c	—	—	4,52,000	By Zia's Capital A/c	—	—	20,000
To Balance c/d	2,65,000	2,65,000	—	By P & L Suspense A/c     (Share of Profit)	—	—	42,000
	3,13,000	3,13,000	5,08,000		3,13,000	3,13,000	5,08,000