Ques 2. Shiv. Mohan and Hari were partners sharing profits and losses in the ratio of3:2:1. Mohan died on 30th
June, 2017. His share of profit for the intervening period was based on the sales during that period which were
6,00,000. The rate of profit during the past four years had been 10% on sales. The firm closes its books on 31st
March every year.
Calculate Mohan's share of profit.
Answers
Solve:
(a) Old ratio (Shiv, Mohan and Hari) = 5:5:4
Mohan's profit share = 5/14
His share is divided between Shiv and Hari equally i.e in the ratio of 1:1
Share of Mohan taken by Shiv = 5/14 X 1/2 = 5/28
Share of Mohan taken by Hari = 5/14 X 1/2 = 5/28
New profit share = Old profit share + Share taken from Mohan
Shiv's new share = 5/14 + 5/28 = 10/28 + 5/28 = 15/28
Hari;s new share = 4/14 + 5/28 = 8/28 + 5/28 = 13/28
New profit share (Shiv and Hari) = 15 : 13
(b) Old ratio (P, Q and R) = 5 : 4 : 1
P's profit share = 5/10
Since, no information is given on how Q and R are acquiring P's profit share after his retirement, therefore the new profit sharing ratio between Q and R is calculated just by crossing out P's share. That is, the new ratio becomes 4 : 1
New profit ratio (Q and R) = 4 : 1
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