A, B and C are partners in a firm sharing profit/loss in the ratio of 2 : 2 : 1. On March 31, 2019, C died. Accounts are closed on Dec., 31 every year. The sales for the year 2018 was ₹6,00,000 and the profits were ₹60,000. The sales for the period from Jan. 1, 2019 to March 31, 2019 were ₹2,00,000. The share of deceased partner till his death in the current year's profits on the basis of sales is :
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹4,000.
Profit on sales of year 2018 = 60,000/6,00,000 x 100
= 10%
Profit on sales for period Jan 1, 2019 to March 21, 2019 = 10/100 x 2,00,000
= 20,000
Share of C in profits = 1 /5 x 20,000
= 4,000