Question

Uma and Aman were partners in a firm sharing profits and losses in the ratio of 2 : 1. They closed their books on 31st March every year. Uma died on 31st July 2024, when the Balance Sheet of the firm was as follows:

Balance sheet of Uma and Aman as at 31st July 2024
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Sundry Creditors		30,000	Cash at Bank		84,000
Loan from Uma		10,000	Fixed Assets		78,000
General Reserve		24,000	Goodwill		24,000
Profit for four months (before any interest and appropriations)		62,000
Capital Accounts:
- Uma	36,000
- Aman	24,000	60,000
		1,86,000			1,86,000

According to the terms of their partnership deed:

1. Interest on capital to be allowed to the partners @ 4% per annum.
2. Uma to be allowed a salary of ₹ 250 per month.

The firm’s non-purchased goodwill on the date of Uma’s death was valued at ₹ 12,000.
The amounts due to Uma were transferred to her representative’s loan account.

You are required to prepare:

1. Uma’s Capital Account.
2. Uma’s Loan Account.

Answer 1

Dr.	Profit and Loss Appropriation A/c				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Interest on Partner’s Capital:			By Profit & Loss		62,000
- Uma	480	800
- Aman	320
To Salary: (Four month)
- Uma		1,000
To Partner’s Capital A/c:
- Uma	40,133	60,200
- Aman	20,067
		62,000			62,000

 

Dr.	Uma’s Capital A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Goodwill A/c	16,000	By Balance b/d	36,000
To Uma’s Executor’s Loan A/c	85,613	By Interest on Capital	480
		By Salary	1,000
		By General Reserve	16,000
		By P&L Appropriation A/c	40,133
		By Aman’s Capital A/c	8,000
	1,01,613		1,01,613

 

Dr.	Uma’s Loan A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Uma’s Executor’s Loan A/c	10,000	By Balance b/d	10,000
	10,000		10,000