Question

A and B are partners . C is admitted with a guarantee profit of RS 10000 from A . New profit- sharing ratio is 3:2:1. Profit for the year 2019-2020 is RS 1,20,000 .C will get :
(a) 10000
(b) 30000
(c) 20000
(d) none of these.

Answer 1

Given:

• A and B are partners in a firm.
• C is admitted into the firm and is guaranteed a profit of Rs 10,000 by A.
• The new profit-sharing ratio is 3:2:1.
• The profit for the year was Rs 1,20,000.

To find: C's share in profit.

Answer:

Calculation of the profit distribution:

Since they share their profits and losses in the ratio 3:2:1, the profit will be distributed accordingly.

For A:

• Profit share = Rs 1,20,000 × 3/6 = Rs 60,000

For B:

• Profit share = Rs 1,20,000 × 2/6 = Rs 40,000

For C:

• Profit share = Rs 1,20,000 × 1/6 = Rs 20,000

There is no deficiency in C's profit as C gets more than his guaranteed profit, i.e., Rs 10,000.

Therefore, C's share in profit is option (C) Rs 20,000.

Answer 2

Answer:



Explanation: