Q.P, Q and R are partners sharing profits in the ratio 4:3:3. The firm's books close on 31st March every year. R dies on 30th June 2024. The firm's total sales for the year ended 31st March 2024 were ₹24,00,000, on which the firm earned a profit of ₹3,60,000. Sales for the period 1st April 2024 to 30th June 2024 (up to the date of R's death) were ₹5,00,000. Calculate R's share of profit up to the date of death on the turnover (sales) basis.

On the turnover basis, the previous year's profit-to-sales relationship is applied to the actual sales of the part-period before the deceased partner's own ratio is applied — useful when sales figures for the part-period are available and give a more reliable estimate than a flat time split.

Step 1 — Previous year's profit-to-sales ratio. Profit ÷ Sales for the year ended 31st March 2024 = ₹3,60,000 ÷ ₹24,00,000 = 0.15, i.e. 15%.

Step 2 — Estimate the part-period's profit. Applying the same 15% rate to the part-period's actual sales of ₹5,00,000: estimated profit for 1st April to 30th June 2024 = 15% × ₹5,00,000 = ₹75,000.

Step 3 — R's profit-sharing ratio. P : Q : R = 4 : 3 : 3 (10 parts total), so R's share = 3/10.

Step 4 — R's share of the part-period profit. 3/10 × ₹75,000 = ₹22,500.

Step 5 — Dual-solve check (reverse the order). First find R's notional full-year share of last year's total profit: 3/10 × ₹3,60,000 = ₹1,08,000. Then apply the part-period's proportion of last year's sales to this figure: ₹5,00,000 / ₹24,00,000 = 5/24; ₹1,08,000 × 5/24 = ₹22,500. Both orders of calculation agree exactly, confirming the answer.

Step 6 — Accounting entry. Profit & Loss Suspense A/c Dr ₹22,500; To R's Capital A/c ₹22,500.

If the turnover basis were unavailable (no part-period sales figure given), the time basis could instead be used: taking R's full-year notional share of ₹1,08,000 and apportioning it by 3/12 (April–June) would give ₹27,000 — a DIFFERENT figure from the turnover-basis answer of ₹22,500, since the two bases rely on different assumptions (steady time-flow vs. actual sales pattern) and are not expected to match unless sales happen to be perfectly even through the year.

Students sometimes mix the two bases — for example, applying a time fraction to a turnover-based profit estimate, or vice versa. Once a basis is chosen (or specified in the question), it must be applied consistently and completely on its own terms.