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Question 51 Chapter 6 of +2-Part-1
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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% |
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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 I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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