Vipul died on June 30, 2021. It is specified that the sales during the year 2020-21 was ₹10,00,000 and the sales from 1st April 2021 to June 30, 2021 was ₹2,00,000. Calculate the amount of profit credited to Vipul at the time of his death, if the profit of 2020-21 was ₹2,00,000, considering previous year profit percentage as base, his share of profit is 1/4th.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) - ₹ 10,000
Profit of last year = ₹2,00,000
Sales of last year = ₹10,00,000
% of profit of last year = 2,00,000/10,00,000 x 100
= 20%
Profit of current year for 3 months = 2,00,000 x 20/100
= ₹40,000
As profit ratio is not given means profits are shared equally.
C' share in profit upto his death = 40,000 x 1/4
= ₹10,000