Suppose partner A dies after 3 month from the date of B/s admission ,his share in profits was 1/4.
it was decided to calculate his share of profits till death on last years profit Rs. 10000.
calculate profit share of deceased partner share of profit till the date of death.

Rs. 600

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Rs. 550

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Rs. 650

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Rs. 625

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Solution

The correct option is D Rs. 625
share of profit = 10000(last year profit ) x 3/12 (3months) x 1/4 (share ) = 625

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Similar questions

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.

PRACTICAL PROBLEMS

Vilas, Mangal, Guru were partners in a business sharing profits and losses in the ratio of 2:1:1 respectively. Their Balance sheet as on 31^st March, 2012 was as follows:

Balance Sheet as on 31^st March 2012
Dr.	Cr.
Liabilities		Amount Rs	Assets	Amount Rs
Capital			Land and Building	6,000
Vilas		6,000	Debtors	5,000
Mangal		7,000	Stock	3,000
Guru		3,400	Cash	6,000
Creditors		2,000
General Reserve		1,600
		20,000		20,000

Guru died on 1^st July, 2012

1) Land and Building was to be revalued to Rs 7,000 and RDD was to be created of Rs 200.

2) The drawings of Guru upto the date of his death amounted to Rs 1,000/-

3) Charge interest on drawings Rs 100/-

4) His share of goodwill should be calculated at ‘Three’ years purchase of the profits for the last four years which were Rs 15,000, Rs 13,000/-, Rs 7,000, Rs 5,000

5) The deceased partners share of profit upto the date of his death to be calculated on the basis of average profit of last two years.

Prepare:

1) Profit and Loss Adjustment A/c

2) Partners Capital A/cs

3) Balance Sheet of the continuing firm

4) Give working or share of profit and goodwill

Q. X, Y and Z were partners in a firm. Z died on 31st May, 2018. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed ₹ 19,000 and ₹ 17,000 respectively.
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