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.
Chapter12: S Corporations
Section: Chapter Questions
Problem 26P
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Transcribed Image Text: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.
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