Multiple choice

Raj, Jai and Hari are the partners sharing profits in the ratio 7 : 5 : 4. Hari died on 30th June 2006 and profits for the accounting year 2005-2006 were Rs.24,000. How much share in profits for the period 1st April 2006 to 30th June 2006 will be credited to Hari's account.

  1. Rs. 6,000

  2. Rs. 1,500

  3. Rs. 2,000

  4. nil
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Hari's profit share = 4/16 × Rs. 24,000 = Rs. 6,000 annually. Period 1st April to 30th June = 3 months. Hari's share = Rs. 6,000 × 3/12 = Rs. 1,500. Deceased partners receive profit proportionally until death date.

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