A, B and C were partners in a firm on 31^st March 2021. Mr. C died on 30th June 2021. Calculate the amount of profits of current year to be credited to his Capital Account on the basis of following. C's share of profits was to be calculated on the basis of sales, and it is specified that the sales during the previous year was ₹8,00,000 with profit ₹1,00,000 and sales from 1^st April 2021 to 30^th June 2021 was ₹1,50,000.

₹6,250

The correct answer is Option (4) → ₹6,250

Profit of last year = ₹1,00,000
Sales of last year = ₹8,00,000
% of profit of last year = 100000/800000 x 100
                                 = 12.5%

Profit of current year for 3 months = 150000 x 12.5/100
                                                  = ₹18750

As profit ratio is not given means profits are shared equally.
C' share in profit upto his death = 18750 x 1/3
                                              = ₹6250