R, S and T were partners sharing profits and losses in the ratio of 5: 3: 2 respectively. On 31st March, 2018, their Balance Sheet stood as:

Sundry Creditors40,000Goodwill25,000
Bills Payable15,000Leasehold1,00,000
Workmen Compensation Reserve30,000Patents30,000
Capital A/c :Machinery1,50,000
R 1,50,000Stock50,000
S 1,25,000Debtors40,000
T 75,0003,50,000Cash at Bank40,000
 4,35,000 4,35,000

T died on 1st August, 2018. It was agreed that:
(a) Goodwill be valued at 212 years’ purchase of average of last 4 years’ profits which were: 2014-15: Rs. 65,000; 2015-16: Rs. 60,000; 2016-17: Rs. 80,000 and 2017-18: Rs. 75,000.
(b) Machinery be valued at Rs. 1,40,000; Patents be valued at Rs. 40,000; Leasehold be valued at Rs. 1,25,000 on 1st August, 2018.
(c) For the purpose of calculating T’s share in the profits of 2018-19, the profits in 2018-19 should be taken to have accrued on the same scale as in 2017-18.
(d) A sum of Rs. 21,000 to be paid immediately to the Executors of T and the balance to be paid in four equal half-yearly instalments together with interest @ 10% p.a.
Pass necessary Journal entries to record the above transactions and T’s Executors’ Account. 


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