Question

R, J & D are the partners sharing profits in the ratio $7:5:4$. D died on $30$th June, $2015$. Profit for the accounting year $2014-2015$ was $Rs.24,000$. How much share in profits for the period $1$st April, $2015$ to $30$th June, $2015$ will be credited to D's Account?

• A. $Rs.6,000$
• B. $Rs.1,500$
• C. $Rs.4,500$
• D. $Rs.2,000$

Answer 1

Answer: (B)

$Rs.1,500$

Profit of the accounting year 2014 - 2015 = Rs. 24000

Profit till 30th June = Rs.24000 * (3/12) = 6000

Distribution of profit among partners on the date of the death of D

R = 6000 * (7/16) = 2625

J = 6000 * (5/16) = 1875

D = 6000 * (4/16) = 1500