Question

Dinkar, Navita and Vani were partners sharing profits and losses in the ratio of 3 : 2 : 1. Navita died on 30th June, 2025. Her share of profit for the intervening period was based on the sales during that period, which were ₹ 6,00,000. The rate of profit during the past four years had been 10% on sales. The firm closes its books on 31st March every year.

Calculate Navita’s share of profit.

Answer 1

The intervening period is from the last book closing date (31st March, 2025) to the date of death (30th June, 2025), which is exactly 3 months.

Sales during this 3-month period = ₹ 6,00,000

The past trend shows a profit rate of 10% on sales.

Estimated Total Profit of the firm for these 3 months:

Total Profit = Sales × Profit Rate

Total Profit = `6,00,000 xx 10/100`

= 60,000

Old Profit-Sharing Ratio (Dinkar : Navita : Vani) = 3 : 2 : 1

Navita’s Profit Share Proportion = `2/6`

Navita’s Share = `60,000 xx 2/6`

= 20,000