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A firm earns a profit of ₹84,000, and the deceased partner’s share in the profit-sharing ratio is \(\frac{3}{14}\). What is the deceased partner’s share of the profit?

Answer and explanation

Correct answer: ₹18,000

The deceased partner’s share of profit = Total profit × Partner’s fraction = ₹84,000 × \(\frac{3}{14}\). Dividing ₹84,000 by 14 gives ₹6,000, and multiplying by 3 gives ₹18,000. Therefore, option A is correct. As an exam tip, divide by the denominator first and then multiply by the numerator to reduce calculation errors.

Related tags

AccountancyPartnership AccountsRetirement Or Death Of PartnerDeceased Partner ShareProfit Sharing RatioDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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