Question : In the partnership agreement between R Sand T who were sharing profits in the ratio of 5 : 3 : 2, the goodwill was to be valued on the death of any partner on the basis of such partner’s share of 2 year’s profits calculated on the average of 5 year’s profits Immediately preceding the year of death less 10%. The firm’s profits were 2014 Rs. 10,000; 2015 Rs.30,000; 2016 Rs.43,000 and in 2017 and 2018 losses of Rs.6,000 and Rs.4,000 respectively. The deceased partner’s share of profits for the period of his life-time in the year of death was to be based on the average of the profits of the previous 3 years plus 10%. R died on 31st August, 2018. His Capital A/c showed a credit of Rs.50,000 on 1st April, 2018 and he had drawn Rs.4,000 since that date. Q. Share of Profit -----
Option 1: Rs 2521
Option 2: Rs 2520
Option 3: Rs 2500
Option 4: Rs 1920
Correct Answer: Rs 2521
Solution : Answer = Rs 2521
Share of Profit = (4000) +(5000) + 43000/3 = 11000 A's Share = 1100/12,100 * 5/10 * 5/12 = 2520.8 = 2521 Hence, the correct option is 1.
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