Question

A and B are partners sharing profits in the ratio of 3 :2. C was admitted for 1/6th share

of profit with a minimum guaranteed amount of `10,000. At the close of the first financial

year the firm earned a profit of `54,000. Find out the share of profit which A, B and C will

get.​

Answer 1

Answer:

The ratio of profit share of A & B = 3 : 2

At the year-end, firm earned a profit of = Rs. 54,000

C’s was admitted for a share of profit = 1/6th  

So, C’s profit share as per the profit-sharing ratio = (1/6) * 54,000 = Rs. 9000

But, a minimum guaranteed amount was agreed by A & B to be adjusted with C that was Rs. 10000, therefore,  

C’s final profit share will be = Rs. 10,000

Now,

The balanced profit that A & B will share in the ratio of 3 : 2 = Rs. 54000 – Rs. 10000 = Rs. 44,000.

Thus,

The final profit share at the end of the year for A, B & C will be as follows:

A’s share = (2/5) * 44000 = Rs. 17,600

B’s share = (3/5) * 44000 = Rs. 26,400

C’s share = Rs. 10,000