You are given the Balance Sheet of Mohit, Sohan and Rahul who are partners sharing profits in the ratio of 2 : 2 : 1, as on March 31, 2017.

Sohan died on June 15, 2017. According to the Deed, his legal representatives are entitled to:
(a) Balance in Capital Account,
(b) Share of goodwill valued on the basis of thrice the average of the past 4 years’ profits.
(c) Share in profits up to the date of death on the basis of average profits for the past 4 years.
(d) Interest on capital account `@ 12%` p.a.
Profits for the years ending on March 31 of 2014, 2015, 2016, 2017 respectively were Rs. 15,000, Rs. 17,000, Rs. 19,000 and Rs. 13,000.
The firm had taken a Joint Life Policy of Rs. 1,25,000, the annual premium being charged to profit & loss account every year.
Sohan’s legal representatives were to be paid the amount due. Mohit and Rahul continued as partner by taking over Sohan’s share equally. Work out the amount payable to Sohan’s legal representatives.

Explanation

Working Notes
1. Sohan's Share of Goodwill
= Goodwill of the Firm `xx(2)/(5)`
= Rs. 48,000 `xx(2)/(5)` = Rs. 19,200
Goodwill of the Firm `= 3 xx` Average Profit
`= 3 xx (Rs. 64,000)/(4)` = Rs. 48,000
2. Profit and Loss
(Share of Profit from the date of last Balance Sheet to the date of death) `2(1)/(2)` months.
= `(Rs. 64,000)/(4)xx(2)/(5)xx(2.5)/(12)`
`" = Rs. 1,333"`
3. Joint Life Policy = Rs. 1,25,000
Sohan's share `= (2)/(5) xx` Rs. 1,25,000
`" = Rs. 50,000"`
4. Interest on Capital = Rs. 25,000 `xx(12)/(100) xx (2.5)/(12)`
`" = Rs. 625"`