Step 1: Understanding the Concept:
To calculate the deceased partner's share of profit, we first find the average profit of the firm for the last three years and then determine the share proportional to the time they were active in the current year.
Step 2: Key Formula or Approach:
- Average Profit = \( \frac{\text{Sum of profits}}{\text{Number of years}} \)
- Share of Profit = \( \text{Average Profit} \times \text{Time fraction} \times \text{Profit sharing ratio} \)
*Note: As the profit-sharing ratio is not explicitly given, it is assumed the partners shared profits equally (1:1:1), so Joshi's share is 1/3.*
Step 3: Detailed Explanation:
1. Calculate Average Profit:
\[ \text{Average} = \frac{8000 + 9000 + 10000}{3} = \frac{27000}{3} = 9000 \]
2. Determine time fraction:
Joshi died on 28th Feb 2018, having worked for 2 months (Jan and Feb) in the year 2018.
\[ \text{Time} = \frac{2}{12} = \frac{1}{6} \]
3. Calculate Joshi's share:
\[ \text{Profit} = 9000 \times \frac{1}{6} \times \frac{1}{3} = 9000 \times \frac{1}{18} = 500 \]
Step 4: Final Answer:
Joshi’s share of profit is 500.