Question

A, B and C were partners, sharing profit in the ratio of 3 : 2 : 1. B died on 30th June, 2025. Profit share of the deceased partner from the beginning of the financial year was to be estimated based on sales up to the date of death and profit of the previous year. Net Profit earned in the previous year was 20% of net sales. Net sales for the period of three months ended 30th June, 2025 were 6,00,000. The profit share of B will be ______.

Options

• ₹ 35,000

• ₹ 40,000

• ₹ 20,000

• ₹ 60,000

Answer 1

A, B and C were partners, sharing profit in the ratio of 3 : 2 : 1. B died on 30th June, 2025. Profit share of the deceased partner from the beginning of the financial year was to be estimated based on sales up to the date of death and profit of the previous year. Net Profit earned in the previous year was 20% of net sales. Net sales for the period of three months ended 30th June, 2025 were 6,00,000. The profit share of B will be ₹ 40,000.

Explanation:

Previous year’s net profit margin = 20% of sales, so estimated profit for the period Apr–Jun

= `20/100 xx 600,000`

= ₹ 120,000.

Profit-sharing ratio A : B : C = 3 : 2 : 1,

so B’s fraction = `2/(3 + 2 + 1)`

= `2/6`

= `1/3`

B’s share = `₹ 120,000 × 1/3`

= ₹ 40,000