Question

Ram, Manohar & Joshi were partners in a firm. Joshi died on 28th February. His share in profits from the closure of the last accounting year ended 31st December till the date of death was to be calculated on the basis of avg. of 3 completed years of profits before death. Profits of the last 3 years were 7000, 8000 & 9000 respectively. Calculate Joshi`s share of profits.

• A. None of the above
• B. Rs 333.33
• C. Rs 444.44
• D. Rs 222.22

Answer 1

The correct option is C

Rs 444.44

Avg. Profits = (7,000+8,000+9,000)/3= Rs 8,000.

Profit is calculated till death.

So, 2 months profits = 8,000 $\times$ 2/12= Rs 1,333.33

Joshi`s share = 1333.33 X 1/3= Rs 444.44