"L,M, N and P are the partners sharing profit in the ratio 4:3:2:1. N died on 30th June 2021. Profits for the last 4 previous years were, ₹1,20,000, ₹50,000, ₹80,000 and ₹70,000 respectively. How much amount will be paid to deceased partner?"

₹4,000

The correct answer is option 3- ₹4,000.

Average Profit = (1,20,000 + 50,000 + 80,000 + 70,000)/4
                       = 3,20,000/4
                       = 80,000

Profit for the current year till 30th June = 80,000 x 3 /12
                                                              = 20,000

Deceased Partner's share = 20,000 x 2/10
                                          = 4,000