Question : A, B and C are in the Trading Business of Clothes. They have been sharing profit equally up to the year ended on March 31st, 2020. They Reconstituted the firms, and the profit-sharing ratio was changed to 3:2:1. C, being a working partner, demanded that he should be paid an annual salary of Rs 75,000. The partners did not agree to the salary demanded by C but agreed to give him a minimum Guaranteed Profit of Rs 60000. Their capital as of April 1st, 2020, was Rs 5,00,000, Rs 4,00,000 and Rs 3,00,000, respectively. Profit for the year ended March 31st, 2020 was Rs 3,00,000.
Question:
What will be the partner's profit shares if C's share of profit is guaranteed by A personally?
Option 1: Rs 1,40,000, Rs 1,00,000, Rs 60,000
Option 2: Rs 1,44,000, Rs 96,000, Rs 60,000
Option 3: Rs 1,60,000, Rs 80,000, Rs 60,000
Option 4: Rs 1,20,000, Rs 1,20,000, Rs 60,000
Correct Answer: Rs 1,40,000, Rs 1,00,000, Rs 60,000
Solution :
Answer =
Rs 1,40,000, Rs 1,00,000, Rs 60,000
Deficiency=10,000
Borne by A personally
A's share of profit=1,50,000-10,000=1,40,000
B's share of profit=1,00,000
C's share of profit=60,000
Hence, the correct option is 1.
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