Question

Bakul, Champak and Darshan were partners in the firm sharing profits in the ratio of 5:4:1. The profit of the firm for the year ending on March 31, 2019, was Rs. 1,00,000. Champak dies on June 30, 2019. What is Champak's share of profit for the period from April 1 to June 30, 2019?

Options

• 20000

• 10000

• 30000

• 40000

Answer 1

10000

Explanation:

Total profit for the year ending on 31 March, 2006 = Rs. 1,00,000
Champak's share of profit: Proceeding Year's Profit × Proportionate Period × Share of Deceased Partner = `("Rs". 1,00,000 × 3)/12 × 4/10` = Rs. 10, 000