A,B and C are sharing profits in ratio of 4:3:2 A dies on 31 Dec 2017 Account are closed - Accountancy - Reconstitution- Retirement/Death of a Partner

Question

A,B and C are sharing profits in ratio of 4:3:2 A dies on 31 Dec
2017 Account are closed on 31 march every year Sales for year
ending 31 march 2017 amounted to rs 400000 Sales of 330000 amounted
between period from 1 apr 2017 to 31 dec 2017 The profit for year
ending 31 march 2017 amounted to rs 60000 Calculate the deceased
partner s share in current years profit of firm

Charu Kashyap · Accepted Answer

Dear
Student

Sales for year ending
31-03-11

400,000

Profit for the year
ending 31-03-11

60,000

Net profit
ratio
(60,000 / 4,00,000 ) x
100
15%

Profit till
Death

Sales between 01-04-11 to
31-12-11

330,000

Profit @ 15% on sales
(Based on previous years ratio)
(3,30,000 x
15%)
49,500

A's
Share
(49,500 x
4/9)
22,000

Therefore A's share is Rs
22,000/- in current years profit

Regards

Sales for year ending 31-03-11		400,000
Profit for the year ending 31-03-11		60,000
Net profit ratio	(60,000 / 4,00,000 ) x 100	15%
Profit till Death
Sales between 01-04-11 to 31-12-11		330,000
Profit @ 15% on sales (Based on previous years ratio)	(3,30,000 x 15%)	49,500
A's Share	(49,500 x 4/9)	22,000