A, B and C were trading in partnership sharing profits and losses in the proportion of 4:3:3. The balances in the books of the firm as on 31st December, 2022 subject to final adjustment were as under: Debit Credit Capital Accounts: A B C Current Accounts: A B C Land and Building Furniture and Fixtures Stock Debtors Bank Account Profit for the year before charging interest Creditors 36,000 54,000 54,000 1,80,000 33,750 2,81,250 45,000 90,000 2,25,000 1,12,500 1,35,000 2,34,000 67,500 Total 7,74,000 7,74,000 Regarding Goodwill may be made separately, instead of through Revaluation Account C died on 30th June, 2022. The partnership deed provided that: (a) Interest was credited on Capital Account of Partners as @ 12% per annum on the balance at the beginning of the year. (b) On the death of partner: (i) Goodwill was to be valued at three years purchase of average annual profits of three years up to the death, after deducting inter- est on capital employed at 10% p.a. and a fair remuneration for each of the partners. (ii) Fixed assets were to be valued by an independent valuer and all other assets and liabilities to be taken at book value, and (c) Whenever necessary, profit or loss should be apportioned on a time basis. You ascertain that: (i) Profit for three years, before charging partners' interest were: 2019 2,52,000 2020 2,83,500 2021 2,70,000 (ii) The independent valuation on the date of death revealed: Land and Building 2,25,000 Furniture and Fixtures 22,500 (iii) For valuation of goodwill a fair remuneration for each of the partners would be ₹ 56,250 per annum and that the capital employed in the business to be taken as 5,85,000 throughout. It was agreed between the partners that: (1) Goodwill was not be shown as an asset of the firm as on 31st December, 2022. Therefore, adjustment for goodwill was to be made in Capital Accounts. (2) The amount due to C's Estate was to remain as loan with the firm carrying interest at 12% p.a. (3) A and B would share profits equally from the date of death of C. (4) Depreciation on revised value of assets would be ignored. You are required to prepare: (A) Partners' Capital Account and Current Account; and (B) Balance Sheet of the firm as on 31st December, 2022. Working should be done correct to the nearest rupee [June 2023, 20 Marks]