Question

A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. Books are closed on 31st March every year. C dies on 5th November, 2023. Under the partnership deed, the executors of the deceased partner are entitled to his share of profit to the date of death, calculated on the basis of last year’s profit. Profit for the year ended 31st March, 2023 was ₹ 2,40,000. C’s share of profit will be: 

Options

• ₹ 28,000

• ₹ 32,000

• ₹ 28,800

• ₹ 48,000

Answer 1

₹ 28,800

Explanation:

C’s share of Goodwill = `2,40,000xx219/365xx1/5`

= ₹ 28,800