A, B and C are partners in a partnership firm. On 30^th June 2021 C died. His share of profit is to be calculated on the basis of average profit of last three years which were Rs 1,00,000, Rs 2,00,000 and Rs 3,00,000 for the year ending on 31^st March 2018, 2019 and 2020 respectively. Their profit sharing ratio was 3 : 3 : 4. What will be 'C's share of profit?

₹20,000

The correct answer is Option (2) - 20,000.

Average profit = (1,00,000 + 2,00,000 + 3,00,000) /3
                     = ₹200000

Profit of 3 months i.e. upto 30th june = 200000 x 3/12
                                                      = ₹50000

C' share = 50000 x 4/10
             = ₹20000