Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

If X 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 share of profit for the period from April 01, 2020 to June 30, 2020 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:

Options:

₹26000

₹13000

₹10000

₹12000

Correct Answer:

₹13000

Explanation:

Average profits = (136000 + 154000 + 100000) /3
                      = 390000/3
                      = 130000
X share = 130000 X 4/10
            = 52000
1 April to 30 june = 52000 X 3/12
                         = ₹13000