What will be the share of a deceased partner, whose ratio was 1/4, if the turnover in the year of death till the date of death was ₹8,00,000 and in the previous year was ₹20,00,000? Profit in the previous year was ₹4,00,000.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹40,000.
Profit of last year = 4,00,000/20,00,000 X 100
= 20%
Share of deceased partner = 8,00,000 X 20/100 X 1/4
= ₹40,000