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
Answer & explanation
Correct answer: option 2
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