06 March 2011
37. A partnership firm maintains its accounts on calendar year basis. B, one of its partner died on 31st March 2006. The profit for the year 2005 was Rs. 75,000, which was distributed among all the three partners equally. The share of profit of B for the year 2006 on the basis of the year 2005 will be (a) Rs.18,750 (b) Rs.25,000 (c) Rs.Nil (d) Rs.6,250
06 March 2011
See according to me Firm is maintaining it's accounts according to calendar year.B died on 31st Mar.2006. So his share in profits will only be till 31st march06. Profits till 31.03.06 on basis of 2005 = 75000 * 3/12 = 18750 this profit will be shared equally among A,B & C So B's share = 18750 * 1/3 = Rs 6250
CAclubindia
