Question

Arif, Ravi and Ben are partners in a firm sharing profits and losses in the ratio of 6:4:1. Arif guaranteed a minimum profit of ₹ 16,000 to Ben. The trading profit of the firm for the year ending 31st March, 2021, was ₹ 1,32,000.

Answer 1

Explanation:

Let the ratio to be in 6x 4x 1x

6x+4x+1x = 132000

11x = 132000

x = 12000

Answer 2

Correct question:

Arif, Ravi and Ben are partners in a firm sharing profits and losses in the ratio 6:4:1. Arif guaranteed a minimum profit of Rs 16,000 to Ben. The trading profit of the firm for the year ending 31st March, 2021, was Rs 1,32,000. Arif's share in the profits of the firm will be?

Answer:

Calculation of the profit distribution:

Since they share their profits and losses in the ratio 6:4:1, it will be distributed accordingly.

For Arif:

• Profit share = Rs 1,32,000 × 6/11 = Rs 72,000

For Ravi:

• Profit share = Rs 1,32,000 × 4/11 = Rs 48,000

For Ben:

• Profit share = Rs 1,32,000 × 1/11 = Rs 12,000

Deficiency of Ben = Guaranteed profit - Actual profit acquired

Deficiency of Ben = Rs 16,000 - Rs 12,000

Deficiency of Ben = Rs 4,000

Since Arif guaranteed a minimum of Rs 16,000 to Ben, the deficiency arising will be deducted from Arif's share and added to Ben's share.

Corrected profit distribution:

For Arif:

• Profit share = Rs 72,000 - Rs 4,000 = Rs 68,000

For Ravi:

• Profit share = Rs 48,000

For Ben:

• Profit share = Rs 12,000 + Rs 4,0000 = Rs 16,000

Therefore, the profit share of Arif is Rs 68,000.