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A, B and C were partners sharing profits and losses in the ratio of 2: 2:1. C died on 30th June, 2020. Profit and Sales for the year ended 31st March, 2020 were Rs. 1,00,000 and Rs. 10,00,000 respectively. Sales during April to June, 2020 were Rs. 1,50,000. You are required to calculate share of profit of C till the date of his death.

SOLUTION

A, B and C were partners sharing profits (2: 2: 1)
C died on 30th June, 2021 after 3 months of beginning of the year (from 1 April 2021 to 31st June, 2021)

Profit for the year ended 31st March, 2020 were Rs. 1,00,000
Sales for the year ended 31st March, 2020 were Rs. 10,00,000
Percentage of Profit ended 31st March, 2020 were 10,00,000 × 100 ÷ 1,00,000 = 10 %
Sales during April to June, 2020 were Rs. 1,50,000
Profit from April to June, 2020 were Rs. 1,50,000 × 10 ÷ 100 = 15,000
C’s share of Loss for 3 months = 15,000 × 1 ÷ 5 = Rs. 3,000


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