 Question 51 Chapter 6 of +2-Part-1

51. (Different Cases of Deceased Partner’s Share of Profit) A, B & C were partners sharing profits and losses in the ratio of 3 :2 :1 respectively. A’ s died on 31st March, 2018. Calculate his share of profits during the accounting year 2019 in each of the following alternative cases :
(i)If the partnership deed provided that the share of profit till the date of death estimated at the sum calculated on the average of the last three completed year profits. The books showed the profits for the calendar years as under: 2014- Rs. 5,000 ; 2015 –Rs.5,000; 2016- Rs 8,000 ; 2017 -Rs.7,000 and 2018- Rs.9,000.
(ii)If the partnership deed provided that the share of profit till the date of death be estimated d at the sum calculated on the sales till the date of death by applying the ratio of net profit to sale for the last accounting year, Sales from 1.1.2018 to 31.3.2019 amounted to 30,000. Sales and set profit fit the year 2018 amounted in Rs. 3,60,000 and Rs.54,000 respectively

## The solution of Question 51 Chapter 6 of +2 Part-1: –

(i) A’s share of profit based on average of last three complete years

 Average profits of previous 3 years : Year Profit 2016 8,000 2017 7,000 2018 9,000 24,000
 = 24,000 3 = Rs 8,000

A’s share for 3 months = 8,000 X (3/6)X(3/12) = Rs. 1,025

(ii) A’s share of profit based on ratio of gross profit of previous years

 Rate of gross profit 2017 = 54,000 x 100 3,60,000 = 15%

Sales from 1.1.19 to 31.3.19 = Rs. 30,000

 Gross profit @ 15% = 15 x 30,000 100 = Rs 4,500
 A’s share in gross profit = 3 x 4,500 6 = Rs 2,250

Comment if you have any questions.
Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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