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Assuming that profit is earned evenly throughout the year, if last year's profit was ₹1,44,000, what is the estimated profit up to the death of the partner after 3 months?

Answer and explanation

Correct answer: ₹36,000

Estimated profit up to death = Last year's profit × 3/12 = ₹1,44,000 × 3/12 = ₹36,000. Since profit is assumed to accrue evenly, 3 months represents one-fourth of the year. For such questions, multiply the annual profit by the number of months divided by 12.

Related tags

AccountancyPartnership FirmsRetirement Of PartnerDeceased Partner ShareEstimated ProfitDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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