Calculate the share of profit of the deceased partner if he retires after 3 months of the current accounting year from the partnership firm. Last year's profit is ₹2,40,000 and the partner's share is 1/3rd in the firm.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹20,000.
Last year profit = ₹2,40,000
3 Months profit on basis of previous year profit = 2,40,000 x 3/12
= ₹60,000
Deceased partner share = 60,000 x 1/3
= ₹20,000