John and Mathew share profits and losses in the ratio of 3:2. They admit Mohanty into their firm for 1/6 share in profits. John personally guaranteed that Mohanty's share of profit, after charging interest on capital @ 10% per annum would not be less than Rs. 30,000 in any year. The capital provided was as follows: John Rs. 2,50,000, Mathew Rs. 2,00,000 and Mohanty Rs. 1,50,000. The profit for the year ending March 31, 2025 amounted to be Rs. 1,50,000 before providing interest on capital. New profit sharing ratio is 3:2:1. Based on this, choose the correct statements from the options given below:

(A) John's share of profit is Rs. 30,000

(B) Mathew's share of profit is Rs. 30,000

(C) Mohanty's share of profit is Rs. 30,000

(D) John's share of profit is Rs. 60,000

(A), (B) and (C) only

Correct answer: Option (1) → (A), (B) and (C) only

Concept: Guarantee of a minimum profit to a partner, per Accounting for Partnership: Basic Concepts.

Profit before interest = 1,50,000; interest on capital @ 10% = John 25,000 + Mathew 20,000 + Mohanty 15,000 = 60,000.
Distributable profit = 1,50,000 – 60,000 = 90,000, shared 3 : 2 : 1 ⇒ John 45,000, Mathew 30,000, Mohanty 15,000.
Mohanty is guaranteed 30,000, so his deficiency 30,000 – 15,000 = 15,000 is borne by John.
Final profit shares: John 45,000 – 15,000 = 30,000, Mathew 30,000, Mohanty 15,000 + 15,000 = 30,000.
So statements (A), (B) and (C) are correct and (D) is wrong. Hence Option (1).