Khushi, Namita and Manvi were partners in a firm sharing profits and losses in the ratio of 5:2:3. On 30th June, 2022, Khushi died. The partnership deed provided that on the death of a partner, her share of profit till the date of death was to be calculated on the basis of average profit of last three years less ₹ 10,000. Profits for the last three years were: Year ended Profits/Loss (₹) 31st March, 2020 1,20,000 31st March, 2021 (50,000) 31st March, 2022 1,70,000 Khushi's share of profit till the date of her death was:

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₹ 8,750 Explanation: Average profit of last three years = ` (1,20,000 - 50,000 + 1,70,000)/3 = (2,40,000)/3` = ₹ 80,000 Khushi’s share of profit till date of her death (From 1st April to 30th June, 2022) = `(80,000 - 10,000) xx $\frac{5}{10}$xx3/12 = 70,000 xx $\frac{5}{10}$ xx $\frac{3}{12}$` = ₹ 8,750

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