Question

A, B and C are partners in a firm sharing profit/loss in the ratio of 3 : 2 : 1. On March 31, 2019, C died. Accounts are closed on Dec., 31 every year. The sales for the year 2018 was 10,00,000 and the profits were 2,00,000. The sales for the period from Jan. 1, 2019 to March 31, 2019 were ₹ 3,00,000. The share of deceased partner in the current year’s profits on the basis of sales is:

Options

• ₹ 2,500

• ₹ 10,000

• ₹ 15,000

• ₹ 60,000

Answer 1

₹ 10,000

Explanation:

Profit Sharing Ratio: A, B, and C share profits in the ratio 3 : 2 : 1

Total Sales (2018): ₹ 10,00,000

Profit for 2018: ₹ 2,00,000

C’s share of the profit for 2018 = `1/6xx2,00,000`

= ₹ 33,333.33

Sales from January 1, 2019 to March 31, 2019: ₹ 3,00,000

Profit per ₹1 of sales = `(2,00,000)/(10,00,000)`

= 0.20

Profit for the period (January 1 to March 31, 2019) = 0.20 × 3,00,000

= ₹ 60,000

C’s share = `1/6xx60,000`

= ₹ 10,000