Practicing Success
A and B share profits and losses in the ratio of 2: 1. They admit C as partner with 1/4th share in profits with a guarantee that his share of profit shall be at least ₹50,000. The net profit of the firm for the year ending March 31st, 2022 was ₹2,40,000, Determine C's share in profits. |
₹50,000 ₹60,000 ₹40,000 ₹30,000 |
₹60,000 |
The correct answer is Option (2) → ₹60,000 A and B share profits and losses in the ratio of 2 : 1. B's new share = 1/3 x 3/4 New ratio between A, B & C is 6/12 : 3/12 : 1/4 As Actual profit is more than guaranteed profit then actual profit is given to C. |