Question

S. T, W & X are partners sharing profits ratio 4:3:2:1. X is given a guarantee that his share of profit in any year would be Rs. 80000. deficiency, if any, would be borne by others equally. the profits for the year ended 31st march, 2021 amounted to rs. 650,000. The final share in the profit would be?​

Answer 1

Given data:

• S, T, W and X are partners sharing profits and losses in the ratio 4:3:2:1.
• X is guaranteed a minimum profit of Rs 80,000.
• Any deficiency arising is to be met by the other partners equally.
• The profit for the year was Rs 6,50,000.

To find: The profit shares of each partner.

Answer:

Assumed profit distribution:

• S's share = 4/10 of the profit
• T's share = 3/10 of the profit
• W's share = 2/10 of the profit
• X's share = 1/10 of the profit

Calculation of profit shares:

For S:

• Profit share = 4/10 × Rs 6,50,000 = Rs 2,60,000

For T:

• Profit share = 3/10 × Rs 6,50,000 = Rs 1,95,000

For W:

• Profit share = 2/10 × Rs 6,50,000 = Rs 1,30,000

For X:

• Profit share = 1/10 × Rs 6,50,000 = Rs 65,000

Deficiency of X = Guaranteed profit - Actual profit acquired

Deficiency of X = Rs 80,000 - Rs 65,000

Deficiency of X = Rs 15,000

As per the question, the deficiency is to be met by the other partners equally, i.e., in the ratio 1:1:1.

From S, X gets:

• Rs 15,000 × 1/3 = Rs 5,000

From T, X gets:

• Rs 15,000 × 1/3 = Rs 5,000

From W, X gets:

• Rs 15,000 × 1/3 = Rs 5,000

Corrected profit shares:

For S:

• Profit share = Rs 2,60,000 - Rs 5,000 = Rs 2,55,000

For T:

• Profit share = Rs 1,95,000 - Rs 5,000 = Rs 1,90,000

For W:

• Profit share = Rs 1,30,000 - Rs 5,000 = Rs 1,25,000

For X:

• Profit share = Rs 65,000 + Rs 15,000 = Rs 80,000

Therefore, the profit shares of S, T, W and X are Rs 2,55,000, Rs 1,90,000, Rs 1,25,000 and Rs 80,000 respectively.

Answer 2

Explanation:

profit

s = 255000

w = 12500

t = 190000

x = 8000