A,B,C are sharing profits in the ratio of 4:3:2 A dies on 31st december 2011, accounts are closed on - Accountancy - Reconstitution- Retirement/Death of a Partner

Question

A,B,C are sharing profits in the ratio of 4:3:2 A dies on 31st
december 2011, accounts are closed on 31st march every year Sales
for the year ending 31st march 2011 amounted to RS 4,00,000 Sales
of Rs 3,30,000 amounted between periods from 1st april to 31st
december 2011 the profit for the year ending 31st march, 2011
amounted to RS 60,000 Calculate the deceased partners share in the
current year's profits of the firm

Neha Chopra · 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