Monu, Sonu and Golu are partners in a firm sharing profits in the ratio of 2 : 2 : 1. Golu died on 5th November 2021. Under the partnership deed, the executors of the deceased partner are entitled to his share of profit to the date of death, calculated on the basis of last year’s profit. Profit for the year ended 31st March 2022 was Rs. 3,00,000. Golu’s share of profit will be :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 36,000
Golu's executors get his share of profit only for the part of the year up to his death, worked out on the basis of the given year's profit. The firm's year starts on 1st April, so the period is 1st April to 5th November 2021.
Days from 1st April to 5th November = 30 + 31 + 30 + 31 + 31 + 30 + 31 + 5 = 219 days
Golu's share of the year's profit = Rs. 3,00,000 × 1/5 = Rs. 60,000
Golu's share up to the date of death = Rs. 60,000 × 219/365 = Rs. 36,000
Rs. 60,000 is Golu's share for the full year; he was a partner for only 219 days of it.