A, B and C sharing profits and losses as 4:3:1 had their capitals on 1.4.2018: ₹15,000; ₹15,000; and ₹10,000 respectively. The Deed provided

(i) That interest would be payable on capital at 10% p.a.

(ii) That in case of retirement, the goodwill would be valued at two years’ purchase of the average divisible profits of the last five years

(iii) That the profit of the retiring partner to the date of retirement would be estimated on the basis of the average divisible profit of the last three years, and (iv) that the firm would effect a joint life policy of ₹30,000, charging the premium as expense.

A retired with effect from 1.10.2018. The surrender-value of the policy as on that date was ascertained at ₹8,000 and to that date drawings amounted to A ---- ₹3,000; B ---- ₹2,000 and C ---- ₹1,000. Profits after charging interest and policy premium were:

A’s final claim was met to the extent of claims on revenue accounts out of the assets of the business and the rest out of cash brought in by B and C in such proportions as to set their capitals at balances equated to their shares in the profits. Prepare the Capital Accounts of A, B and C.

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2017-18 10,000; 2016-17 -9,500; 2015-16-7,200; 2014-15-8,800; 2013-14 --* 8,000. -