Question

A, B and C were partners in a firm sharing profits and losses in the ratio of 5:4:1. B died on June 30, 2025. The profit for the previous three years were Rs 68,000 (For 2022-23), Rs 77,000 (For 2023-24), Rs 50,000 (2024-25) while the sales during the year 2024-25 were Rs. 4,00,000 and the sales from April 1, 2025 to June 30, 2025 were Rs. 75,000. Find the profits that the firm must have earned from the date of closing of last year's balance sheet till the date of death of B.

• A. Rs 65,000
• B. Rs 18,750
• C. Rs 9,375
• D. Rs 3,750

Hint:

Use the sales basis on the last year's profit: 50,000 \(\times\) 75,000 / 4,00,000.

Answer 1

The Correct Option is C

Step 1: Find what part of the year's sales has passed.
Sales before B's death are Rs 75,000 out of a full year's Rs 4,00,000. The fraction is
\[ \frac{75{,}000}{4{,}00{,}000} = \frac{3}{16} \]

Step 2: Pick the profit to be used.
The sales method takes the profit of the immediately previous year, which is Rs 50,000 for 2024-25. The older years 2022-23 and 2023-24 are not needed.

Step 3: Apply the fraction.
\[ 50{,}000 \times \frac{3}{16} = \frac{1{,}50{,}000}{16} = 9{,}375 \]

Step 4: Cross check with the options.
A time based estimate on Rs 50,000 for three months would be Rs 12,500, which is not offered. The sales based figure Rs 9,375 is present in the options.

Step 5: Conclude.
Profit from April 1, 2025 to June 30, 2025 is Rs 9,375.
\[ \boxed{\text{Rs } 9{,}375} \]

Final Answer:
The profit up to the date of death is Rs 9,375.