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Profit and Loss

A, B and C we...

Question

A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. C died on 30th June, 2018. Profit and Sales for the year ended 31st March, 2018 were ₹ 1,00,000 and ₹ 10,00,000 respectively. Sales during April to June, 2018 were ₹ 1,50,000. You are required to calculate share of profit of C up to the date of his death.

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Solution

Profit for the year 2017-18 = Rs 1,00,000

Sales for the year 2017-18 = Rs 10,00,000

$Ratio of Profit to Sales in 2017 - 18 = \frac{1, 00, 000}{10, 00, 000} \times 100 = 10 %$

Sales from April 01 2018 to June 30, 2018 = Rs 1,50,000

∴Profit from April 01, 2018 to June 30, 2018 on the basis of Profit Ratio of 2017-18

∴C’s Profit Share (from April 01, 2018 to June 30, 2018)

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