Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

P, Q and R are partners sharing profits in the ratio 3:2:1. P died on 31st September 2021. Sales for the last year were Rs 4,20,000 whereas for the current year till September 31st , it was 2,40,000. Profit for the last year was 2,10,000. Calculate P's share in profit for the current year.

Options:

60,000

1,05,000

90,000

1,80,000

Correct Answer:

60,000

Explanation:

"Rate of Profit for the year - Profit / Sales *100
= 2,10,000/4,20,000 * 100 = 50%
Profit of the year till September - 2,40,000 * 50% = 1,20,000
P 's share- 1,20,000 * 3/6 =60,000"