Question

Ram, Manu and Hari were partners in a firm. Hari died on 30th June, 2020. His share of proht from the closure
of the last accounting year till the date of death was to be calculated on the basis of the average of three
completed financial years of profits before death. Profits for the years ended 31st March, 2018, 2019 and
2020 were 1,10,000; * 1,20,000 and 1,30,000 respectively. Calculate Hari's share of profit till the date of
his death and pass necessary Journal entry for the same.​

Answer 1

Answer:

Average Profit= 1,10,000+1,20,000+1,30,000 / 3

= 1,20,000

Explanation:Hari Share of profit =

1,20,000* 3/12*1/3(npsr doesn't given so we take 1:1:1)

= 30,000*1/3

= 10,000

Answer 2

Answer:

13,333

Explanation:

The question statement does not state the profit share of three partners, hence that is assumed to be equal for all.

Let us first calculate the average profit based on last three years;

Average = (1,10,000 + 1,20,000 + 1,30,000 ) / 3

Average profit = 1,20,000

Now this is the profit for 12 months, profit from April till June woulld be;

Average profit for one quarter = 1,20,000 / 3 = 40,000

Now profit share of Hari = 40,000 / 3 = 13,333