Question

Ajit, Biswas and Chitra were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Biswas died on 30\textsuperscript{th} September, 2024. The firm closes its books on 31st March every year. Biswas\u2019s share of profits till the date of death from the last Balance Sheet date, was to be calculated on the basis of sales. Sales for the year ended 31st March, 2024 amounted to \u20b9 24,00,000 and that from 1st April, 2024 to 30\textsuperscript{th} September, 2024 amounted to \u20b9 15,00,000. The profits for the year ended 31st March, 2024 were \u20b9 2,40,000. Biswas\u2019s share of profits till the date of his death was:

• A. 11,250
• B. 70,000
• C. 45,000
• D. 22,500

Hint:

When profit is to be calculated based on sales proportion, always use actual sales ratio from last year.

Answer 1

The Correct Option is C

Profit for the year ended 31 March 2024 = \u20b9 2,40,000
Sales for full year = \u20b9 24,00,000
Sales till death = \u20b9 15,00,000
\[ \text{Profit till death} = \frac{15,00,000}{24,00,000} \times 2,40,000 = \u20b9 1,50,000 \] Biswas's share = 3/10 of 1,50,000 = \u20b9 45,000 Final Answer: \u20b9 45,000