Calculate the share of profit or loss of the deceased partner if he retires after 4 months of the current accounting year from the partnership firm. Last year's loss is ₹90,000 and the partner's share is 1/3rd in the firm.

₹10,000 (loss)

The correct answer is option 3- ₹10,000 (loss).

Last year loss = ₹90,000
4 month loss = 90,000 x 4/12
                     = ₹30,000

Deceased partner share of loss = 30,000 x 1/3
                                                  = ₹10,000