Question

Rajat, Mishi and Tanvi were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Tanvi died on 31st October, 2019. According to the partnership agreement, her share of profits from the closure of last accounting year till the date of her death was to be calculated on the basis of aggregate profits of two completed years before death. Profits of the firm for the years ending 31st March, 2018 and 31st March, 2019 were ₹ 57,000 and ₹ 63,000 respectively. The firm closes its books on 31st March every year. Tanvi’s share of profits till the date of her death will be:

Options

• ₹ 24,000

• ₹ 7,000

• ₹ 14,000

• ₹ 12,000

Answer 1

₹ 14,000