If X's share of profit was to be calculated on the basis of the Average Profit of the last three years, which were ₹1,36,000 for 2018-19, ₹1,54,000 for 2019-20, and ₹1,00,000 for 2020-21, X's share of profit for the period from April 01, 2021 to June 30, 2021 shall be calculated on the basis of Average Profit. The profit-sharing ratio is 4: 5: 1 between X, Y, and Z. His share of the profit will be:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹13,000
X’s share of profit up to the date of his death is worked out from the average profit of the last three years, for the part of the year he was a partner (April 01 to June 30 = 3 months), in his profit-sharing ratio.
Average profit = (₹1,36,000 + ₹1,54,000 + ₹1,00,000) / 3 = ₹3,90,000 / 3 = ₹1,30,000
Profit for 3 months = ₹1,30,000 × 3/12 = ₹32,500
X’s share = ₹32,500 × 4/10 = ₹13,000
Forgetting the time factor gives ₹52,000, which is X’s share for a whole year.
NCERT (2026-27 edition):
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