Question

Isha, Julie and Kavita were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. On 12\textsuperscript{th} June, 2024, Kavita died. Her share in the profits of the firm from the last Balance Sheet till the date of death was to be calculated on the basis of last year\u2019s profit. Last year\u2019s profits were \u20b9 6,00,000. Kavita\u2019s share of profit till the date of her death was:

• A. 20,000
• B. 30,000
• C. 40,000
• D. 50,000

Hint:

In such cases, use time proportion method and the deceased partner\u2019s share in profit ratio.

Answer 1

The Correct Option is C

Kavita died on 12 June 2024
Period = 1 April to 12 June = 2.5 months = 2.5/12 year
Last year's profit = \u20b9 6,00,000
\[ \text{Kavita's Share} = \frac{1}{6} \times \frac{2.5}{12} \times 6,00,000 = \u20b9 40,000 \] Final Answer: \u20b9 40,000