Question

E, F and G are partners sharing profits in the ratio of 3:3:2. As per the partnership agreement, G is to get a

minimum amount of Rs.80,000 as his share of profits every year and any deficiency on this account is to be

personally borne by E. The net profit for the year ended 31st March, 2020 amounted to Rs.3,12,000.

Calculate the amount of deficiency to be borne by E?

a) Rs.1,000 b) Rs.4,000 c) Rs.8,000 d) Rs.2,000​

Answer 1

Explanation:

3+3+2 = 8

net profit was given at end of 31 March

Answer 2

2000 Rs. is to be personally borne by E.

Given,

Profits in ratio = E : F : G = 3 : 3 : 2

Minimum amount G is to get = Rs.80,000

The net profit for the year ended 31st March = Rs.3,12,000

To Find,

Amount of deficiency to be borne by E.

Solution,

Calculate the total parts = 3 + 3 + 2 = 8

Minimum amount E will get = $312000\times\frac{3}{8}$

                                             = $Rs. 117000$

Minimum amount F will get = $312000\times\frac{3}{8}$

                                             = $Rs. 117000$

Minimum amount G will get = $312000\times\frac{2}{8}$

                                             = $Rs. 78000$

Now, according to the question, any deficiency on the minimum amount of Rs. 80000, that G is to get, is to be borne by E

Therefore, 80000 - 78000 = 2000 Rs. is to be borne by E.

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