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A, B, C are partners sharing profits in the ratio 1:1:2. C died on 30th June 2006 and profits for the accounting year ended on 31st December 2006 were Rs. 24,000. How much share in profits will be credited to C’s Account. 
  • a)
    Rs. 12,000
  • b)
    Rs. 6,000
  • c)
    Rs. 24,000
  • d)
    Rs. 3,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A, B, C are partners sharing profits in the ratio 1:1:2. C died on 30t...
Since C died on 30th June 2006, he was a partner for the first half of the accounting year (1st January 2006 to 30th June 2006). Therefore, his share in profits for this period will be calculated separately.

Ratio in which profits are shared = 1:1:2

Let the total profit for the year be x.

Profit for the first half of the year (1st January 2006 to 30th June 2006):

Total profit for the year * (1/4) = x * (1/4)

C's share in the first half of the year = (1/4) * (2/4) * x = x/8

Profit for the second half of the year (1st July 2006 to 31st December 2006):

Total profit for the year * (3/4) = x * (3/4)

Since C died on 30th June 2006, he is not entitled to any share in the profit for the second half of the year.

Therefore, C's share in the profits for the whole year = C's share in the first half of the year = x/8

Given that the total profit for the year is Rs. 24,000:

x = Rs. 24,000

C's share in the profits for the whole year = x/8 = 24,000/8 = Rs. 3,000

Therefore, C's share in profits will be credited with Rs. 3,000.
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A, B, C are partners sharing profits in the ratio 1:1:2. C died on 30t...
C's share of profit = 24,000 *2/4 * 6/12 = 6000
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A, B, C are partners sharing profits in the ratio 1:1:2. C died on 30th June 2006 and profits for the accounting year ended on 31st December 2006 were Rs. 24,000. How much share in profits will be credited to C’s Account.a)Rs. 12,000b)Rs. 6,000c)Rs. 24,000d)Rs. 3,000Correct answer is option 'B'. Can you explain this answer?
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