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.
According to the partnership deed, the calculation of a deceased partner's share in profit is based on:
1
The profit of the current financial year until the date of death
2
The average profit of the last three financial years
3
The profit of the last financial year
4
A fixed amount specified in the partnership deed