Question. A, B, C carry on business sharing the profits in the ratio of 2/3, 1/3, 5/6 respectively. Capitals as on 1-1-2021 are A OMR 50,000, B OMR 45,000 and C OMR 30,000. On 31-10-2021 B died and his executors claim the profit. Calculate B's share of profits till the date of death on the basis of average profits of the preceding 4 years. The annual profit or loss figures of preceding five years were: 1.15,000, 2.4,000 Loss, 3. -3,000 (loss), 4. -28,000, 5. -18,000.

Question. A, B, C carry on business sharing the profits in the ratio of 2/3, 1/3, 5/6 respectively. Capitals as on 1-1-2021 are A OMR 50,000, B OMR 45,000 and C OMR 30,000. On 31-10-2021 B died and his executors claim the profit. Calculate B's share of profits till the date of death on the basis of average profits of the preceding 4 years. The annual profit or loss figures of preceding five years were: 1.15,000, 2.4,000 Loss, 3. -3,000 (loss), 4. -28,000, 5. -18,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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