A, B and C are partners in a firm with the PSR of 6:2:1. B retires on 30/9/2010. Calculate the share of B's profits up to the date of his retirement if the sales of the firm up to 30/9/2010 were Rs.18,00,000. The net profit ratio of the business is 30% based on last year's profits of Rs.9,00,000 on sales of Rs.30,00,000. The financial year of the firm is from April to March. Calculate B`s share in profits.

None of the above

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Rs 83,333.33

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Rs 50,000

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Rs 100000

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Solution

The correct option is D
Rs 100000

Profit of the firm up to 30/9/2010 (18,00,000 X 30/100) = Rs.5,40,000
B's Share in the profits (5,40,000 X 2/9) = Rs 1,20,000

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