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Question : A, B and C are partners in a firm sharing profits in the ratio 2:2:1. C is guaranteed a minimum profit of Rs.40,000 by A. Profit for the year amounted to Rs.1,60,000. The profit credited to each partner will be

Option 1: Rs.40,000, Rs.80,000, Rs.40,000

Option 2: Rs.56,000, Rs.64,000, Rs.40,000

Option 3: Rs.64,000, Rs.64,000, Rs.32,000

Option 4: Rs.60,000, Rs.60,000, Rs.40,000


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Rs.56,000, Rs.64,000, Rs.40,000


Solution : Profit = Rs.1,60,000
A:B:C = 2:2:1
C's share of profit = Rs.1,60,000 X 1/5 = Rs.32,000
Minimum profit = Rs.40,000
Loss borne by A = Rs.40,000 - Rs.32,000 = Rs.8,000 is to be borne by A only.
A will bear = Rs.8,000

A's share of profit = Rs.1,60,000 X 2/5 = Rs.64,000
A's new share of profit = Rs.64,000 - Rs.8,000 = Rs.56,000

A' share of profit = Rs.56,000
B's share of profit = Rs.64,000
C's share of profit = Rs.40,000
Hence, the correct option is 2.

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