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 significance of March 31st in the context of the partnership?
1
It is the date when the partnership was formed
2
It is the date when the partnership was dissolved
3
It marks the end of the fiscal year for the partnership
4
It is the deadline for the redistribution of partnership ratios