Vikas, Vijay and Awdesh entered into a partnership on 1st October, 2022 to share profits and losses in the ratio of 3:2:1. Vikas guaranteed that Awadesh’s share of profit would not be less than ₹ 3,00,000 p.a. Profit for the period ended 31st March, 2023 was ₹ 12,00,000. Calculate deficiency to be charged to Vikas.
Vikas, Vijay, and Awdesh entered into a partnership on 1st October 2022 to share profits and losses in the ratio of 3:2:1. Vikas guaranteed that Awadesh’s share of profit would not be less than ₹ 3,00,000 p.a. Profit for the period ended 31st March 2023 was ₹ 12,00,000. Calculate the deficiency to be charged to Vikas.
Anurag Pathak Changed status to publish April 9, 2023
Answer:–
Awdesh’s share of profit = ₹ 12,00,000 * 1/6 = ₹ 2,00,000
Guaranteed amount for half year = ₹ 3,00,000 * 6/12 = ₹ 1,50,000
Since the actual share of profit (₹ 2,00,000) exceeds the guaranteed amount, no deficiency is to be charged to Vikas.
Anurag Pathak Changed status to publish April 9, 2023
