Comprehension Passage
A, B and C were partners sharing profits and losses in the ratio of 2:2:1. Books are closed on 31st March every year. C died on November 1, 2018. Under the Partnership deed the executors of the deceased partner are entitled to his share of profit to the date of death calculated on the basis of last year’s profit. Profit for the year ended 31st March 2018 was Rs. 2,40,000.
What is the basis for calculating the deceased partner C’s share in the partnership's profits?
1
C’s share in the profits is distributed equally among the remaining partners.
2
C’s share in profits is determined by his contribution to the capital.
3
C’s share in profits is based on the partnership ratio prior to his death.
4
C’s share in profits is a fixed percentage irrespective of the profit and loss.