Question

Juhi, Riya and Pari are partners sharing profits and losses in the ratio of 3 : 2 : 1. Riya died on 30th June, 2024. For the year ended 31st March, 2025, a proportionate profit of 2024 is to be taken into consideration. During the year ended 31st March, 2025, bad debts of 2,000 had to be adjusted. Profit for the year ended 31st March, 2024, was 14,000 before adjustment of bad debts.

Calculate Riya’s share of profit till the date of her death.

Answer 1

Calculation of Adjusted Profit for the year ended 31st March, 2024:

Profit for the year ended 31st March, 2024 = ₹ 14,000

Less: Bad debts to be adjusted = ₹ 2,000

Adjusted Profit for 2024 = 14,000 − 2,000

= 12,000

Calculation of Firm’s Estimated Profit for 3 Months (1st April, 2024 to 30th June, 2024):

Estimated Profit = `12,000 xx 3/12`

= 3,000

Calculation of Riya’s Share of Profit:

Riya’s Share = `3,000 xx 2/6`

= 1,000

Riya’s Share of profit till the date of her death = 1,000