Question

A,B,C are partner sharing profit and loss in 3:2:1,C is gurantee by 'A' for minimum profit 30000 profit of the firm is 225000, distribute the profit among the partner​

Answer 1

The profit for the year is Rs 2,25,000.

Calculation of profit distribution:

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

For A:

• Profit share = Rs 2,25,000 × 3/6 = Rs 1,12,500

For B:

• Profit share = Rs 2,25,000 × 2/6 = Rs 75,000

For C:

• Profit share = Rs 2,25,000 × 1/6 = Rs 37,500

C's profit is Rs 37,500, which is more than what is guaranteed to him. Since there is no deficiency, there is no need for any form of adjustment to be made by any of the partners.