A, B and C carried on business in the partnership sharing profits as 3 : 2 : 1. The Balance Sheet on 31st December, 2017 showed their capitals to be : A ₹10,400; B ₹5,000; C ₹3,000. On 28th February, 2018 A died and you are required to prepare necessary accounts for presentation to his executors having regard to the following facts :

(i) The firm had insured the partners’ lives severally, A for ₹9,000; B for ₹4,800; and C for ₹2,400. The premiums have been charged to Profit and Loss Account and the surrender value on 28th February 2018 amounted in each case to one-fourth of the sum assured;

(ii) Capital carried interest at 5% p.a.;

(iii) A’s drawings from 1st January, 2018 to the date of his death amounted to ₹1,200;

(iv) A’s share of profits for the portion of the current financial year for which he lived was to be taken at the sum calculated on the average of the last three completed years and Goodwill was to be valued on the basis of two years’ purchase of the average profits of those three years. The annual profits were ₹9,200; ₹7,400 and ₹8,600 respectively.