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Question : A, B, and C are partners in a business where they split profits and losses 2: 2: 1. C died on March 31, 2022. Each year on December 31st, accounts are closed. Sales for 2021 totaled Rs. 6,00,000, and profits came to Rs. 60,000. From January 1 to March 31, 2022, there were Rs. 2,00,000 sales. The dead partner's share of the sales-based profit for the current year is:

Option 1: Rs.3,000

Option 2: Rs.4,000

Option 3: Rs.20,000

Option 4: Rs.8,000


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Rs.4,000


Solution : % of Profit on sales = 60000 / 600000   = 10%

Hence Profit on Rs.200000 sales which were made from 1 january to 31 march 2022 is Rs.20000 (200000 * 10%)

Profit sharing ratio = 2 : 2: 1

So share of C is Rs.20000 * 1 / 5   = Rs.4000

Hence the correct answer is option 2.

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