Question

Raman, Param and Karan were partners sharing profits and losses in the ratio of 3 : 2 : 1. Param died on 31st December, 2025. Accounts of the firm are closed on 31st March every year. Sales for the year ended 31st March, 2025 was 12,00,000 and sales for the nine months ended 31st December, 2025, were 6,00,000. Loss for the year ended 31st March, 2025, was 90,000.

Calculate the deceased partner’s share of profit/loss from the beginning of the accounting year up to 31st December, 2025.

Answer 1

Calculation of Loss Percentage to Sales (based on previous year’s data):

Loss Percentage = `"previous year’s loss"/"previous year’s Sales" xx 100`

Loss Percentage = `(90,000)/(12,00,000) xx 100`

= 7.5%

Sales during the 9-month period = ₹ 6,00,000

Estimated Loss = Sales for the period × Loss Percentage

Estimated Loss = `6,00,000 × 7.5/100`

= 45,000

Old Profit-Sharing Ratio (Raman : Param : Karan) = 3 : 2 : 1

Param’s share proportion = `2/6 = 1/3`

Param’s share of loss = `45,000 xx 2/6`

= 15,000