Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

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, 2018. 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, 2018 was Rs2,40,000. C's share of profit will be :

Options:

₹28000

₹40000

₹28800

₹29800

Correct Answer:

₹28800

Explanation:

No of days till the death of C= 219
Estimated profit till death of C= 219/365*2,40,000=1,44,000
Share of C=1/5*1,44,000=28,800