A, B, and C are partners sharing profits in the ratio of 5:4:1. C is given a guarantee that his share in a year will not be less than ₹ 50,000. Profit for the year ended 31st March 2023 is ₹ 4,00,000.
A, B, and C are partners sharing profits in the ratio of 5:4:1. C is given a guarantee that his share in a year will not be less than ₹ 50,000. Profit for the year ended 31st March 2023 is ₹ 4,00,000. Deficiency in the guaranteed profit of C is to be borne by B. Deficiency to be borne by B is:
a) Deficiency of C ₹ 15,000 met be B
b) Deficiency of C ₹ 10,000 met by B
c) Deficiency of C ₹ 40,000 met be B
d) None of these
Anurag Pathak Changed status to publish April 9, 2023
Ans – b)
Explanation:-
C’s Share in Profit = 4,00,000 * 1/10 = ₹ 40,000
Deficiency in C’s Share in Profit as per guarantee = ₹ 50,000 – ₹ 40,000 = ₹ 10,000
Deficiency of C ₹ 10,000 met by B
Anurag Pathak Changed status to publish April 4, 2023
