If X's share of profit was to be calculated on the basis of Average Profit of the last three years, which were Rs. 1,36,000 for 2018-19, Rs. 1,54,000 - Accountancy MCQ CUET Accountancy 2022 20 Aug Shift 2 2026 | ExamTest.live

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If X's share of profit was to be calculated on the basis of Average Profit of the last three years, which were Rs. 1, 36, 000 for 2018-19, Rs. 1, 54, 000 for 2019-20 and Rs. 1, 00, 000 for 2020-21. X's share of profit for the period from April 01, 2020 to June 30, 2020 shall be calculated on the basis of Average Profit. The profit sharing ratio is 4 : 5 : 1 between X, Y and Z.His share of profit will be:

Solution & Step-by-step Explanation

Average Profit = \frac{1 , 36 , 000 + 1 , 54 , 000 + 1 , 00 , 000}{3} = \frac{3 , 90 , 000}{3} = Rs. 1, 30, 000 .X's share in profit = Average Profit \times Share of X \times Time period.From April 01 to June 30 is 3 months.X's share = 1, 30, 000 \times \frac{4}{10} \times \frac{3}{12} $ = 1, 30, 000 \times 0.4 \times 0.25 = Rs. 13, 000 $

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If X's share of profit was to be calculated on the basis of Average Profit of the last three years, which were Rs. 1, 36, 000 for 2018-19, Rs. 1, 54, 000 for 2019-20 and Rs. 1, 00, 000 for 2020-21. X's share of profit for the period from April 01, 2020 to June 30, 2020 shall be calculated on the basis of Average Profit. The profit sharing ratio is 4 : 5 : 1 between X, Y and Z.His share of profit will be:

Rs. 26, 000

Rs. 13, 000

Rs. 10, 000

Rs. 12, 000

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