Amar, Akbar and Anthony are sharing profits and losses in the ratio 4:3:2. Amar dies on 31-12-2019. Sales for the year ending March 2019 amounted to Rs 4,00,000. Sales of Rs 3,30,000 took place during the period April 19 to December 19. Profit for the year ending MArch 2019 amounted to Rs 60000. Calculate Amar's share of profits.
Dear Student
Therefore Amar's share is Rs 22,000 in profit
Regards
Sales for year ending 31-03-19 | 400,000 | |
Profit for the year ending 31-03-19 | 60,000 | |
Net profit ratio | (60,000 / 4,00,000 ) x 100 | 15% |
Profit till Death | ||
Sales between 01-04-19 to 31-12-19 | 330,000 | |
Profit @ 15% on sales (Based on previous years ratio) | (3,30,000 x 15%) | 49,500 |
Amar's Share | (49,500 x 4/9) | 22,000 |
Therefore Amar's share is Rs 22,000 in profit
Regards