Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

B, C and D are partners sharing profits in the ratio of 7:5:4. D died on 30th June, 2017 and profits for the year 2017-18 were Rs 12,000. How much share in profits for the period 1st April, 2017 to 30th June, 2017 will be credited to D's Account?

Options:

₹750

₹1200

₹2500

None of the Above

Correct Answer:

₹750

Explanation:

Profit for entire year 2016-17= Rs 12000

Proportionate profit till June 2016=3/12*12000=3000

Share of D in profit till June 2016=4/16*3000=750