Question

Mohit, Shobhit and Rohit are partners sharing profits and losses in the
ratio 2:1:1. Rohit is guaranteed a profit of 14,000. The firm incurredo
profit of $20,000 during the year. Calculate the amount of deficiency
borne by Mohit and Shobhit.
fon which the Securities Premium​

Answer 1

Deficiency amount of Mohit is $ 6,000

Deficiency amount of Shobhit is $ 3,000

Explanation:

The amount of profit which every partner will receive as per the ratio of sharing the profit and losses:

Mohit

= Profit × Share/ Total share

= $20,000 × 2/ 4

= $10,000

Shobhit

= Profit × Share/ Total share

= $20,000 × 1/ 4

= $5,000

Rohit

= Profit × Share/ Total share

= $20,000 × 1/ 4

= $5,000

But Rohit, is guaranteed a profit of $14,000

So, the remaining balance of $6,000 which is divided among the M and S as:

Mohit

= $6,000 × 2/ 3

= $4,000

Shobhit

= $6,000 × 1/3

= $2,000

Now, computing the amount of deficiency as:

Deficiency amount of Mohit = $10,000 - $4,000

= $6,000

Deficiency amount of Shobhit = $5,000 - $2,000

= $3,000