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## Balance Sheet \$type=three\$count=6\$author=hide\$comment=hide\$label=hide\$date=hide\$show=home\$s=0

This is very simple account and it is open when Firm has to pay deceased partner’s executors. In this account first of all we calculate payable amount then we calculate per year installment of executors then include total interest in this amount every year.

I am trying to make you understand with an example suppose firm has to pay RS 100000 to the executor of dead partner B in four installment with 10% rate of interest . For this we divide Rs 100000 by 4 and it will Rs. 25000 every year but first year we include

1st installment Rs. 25000 + interest of Rs. 100000 X 10% =35000
2nd installment Rs. 25000+ interest of Rs. 75000 x 10% =32500

and same procedure for 3rd and 4th year . This is the easy method of given amount to executor of deceased partner

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