Manoj, Suresh and Vaibhav were partners in a firm sharing profits in the ratio of 5:1:4. Vaibhav decides to retire on June 30, 2025. Profit share of Vaibhav till the date of his retirement is to be calculated on the basis of firm's last year profit which is Rs. 1,00,000. The new profit sharing ratio is 1:1. Vaibhav's share of profit for the period from April 01 to June 30, 2025 will be:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 10,000
When a partner retires in the middle of the year, his claim includes his share of profit from the date of the last balance sheet to the date of retirement. Here it is worked out on last year’s profit, for the period he stayed, in his old share.
Old ratio of Manoj, Suresh and Vaibhav = 5 : 1 : 4, so Vaibhav’s old share = 4/10
Period from April 01 to June 30, 2025 = 3 months = 3/12 of the year
Vaibhav’s share of profit = Rs. 1,00,000 × 3/12 × 4/10 = Rs. 10,000
The new ratio of 1 : 1 plays no part here. It decides how Manoj and Suresh share profits after June 30, not how much Vaibhav earned until he left. The share is entered as Profit & Loss Suspense A/c Dr. Rs. 10,000, To Vaibhav’s Capital A/c Rs. 10,000.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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