Question

A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. C died on 30th June, 2018. Profit and Sales for the year ended 31st March, 2018 were ₹ 1,00,000 and ₹ 10,00,000 respectively. Sales during April to June, 2018 were ₹ 1,50,000. You are required to calculate share of profit of C up to the date of his death.

Answer 1

Profit for the year 2017-18 = Rs 1,00,000

Sales for the year 2017-18 = Rs 10,00,000

Ratio of profit to sales in 2017 - 18 = `(1,00,000)/(10,00,000) xx 100 = 10%`

Sales from April 01 2018 to June 30, 2018 = Rs 1,50,000

∴Profit from April 01, 2018 to June 30, 2018 on the basis of Profit Ratio of 2017-18 = `150,000 xx 10/100 = 15,000`

∴C’s Profit Share (from April 01, 2018 to June 30, 2018)

= `15,000 xx 1/5 = "Rs" 3,000`