Calculate the share of profit or loss of the deceased partner if he retires after 4 months of the current accounting year from the partnership firm from the following information-

Last year sales= ₹12,00,000
Profit of the last year= ₹2,40,000
Sales of 4 months = ₹4,00,000
Share of deceased partner in firm= 1/4th

₹20,000

The correct answer is option 2- ₹20000.

Profit percentage of last year = 2,40,000/12,00,000*100
                                              = 20%

Profit of 4 months = 40,00,000*20/100
                             = ₹80,000

Deceased partner share of profit = 80,000*1/4
                                                    = ₹20,000