Question

B, C, D are partners sharing profits in the ratio $7:5:4$. D died on $30$th June $2006$ and profits for the years $2005-2006$ was $Rs.12,000$. How many shares in profits for the period $1$st April $2006$ to $30$th June $2006$ will be credited to D's accounts?

• A. $Rs.3,000$
• B. $Rs.750$
• C. $Rs.1570$
• D. $Rs1,000$

Answer 1

The correct option is B $Rs.750$

On death of partner, representative of deceased partner is entitled to the partner's share of profit from the beginning of the year to the date of the death.

D's share of profit on 30th June, 2006 = Total profit till date * D's share

D's share of profit on 30th June, 2006 = Rs. 12000 * (3/12) * (4/16)

D's share of profit on 30th June, 2006 = Rs. 750