A, B and C are partners sharing profits in the ratio of 5:2:3. They admitted D in the firm for 1/5 share on Oct. 1st, 2022 with a guarantee of profit ₹35,000 annually. The firm earned a profit of ₹1,60,000 for the year ending March 31st 2023. Calculate deficiency borne by B.

₹300

The correct answer is option 2- ₹300.

Old ratio = 5:2:3
D admitted in the firm with 1/5th share
Let total share = 1
D's share = 1/5
Remaining share = 1-1/5
                           = 4/5
This 4/5 will be distributed between old partners in old ratio. So,
A's new share = 4/5 x 5/10
                       = 20/50
B's new share = 4/5 x 2/10
                       = 8/50
C's new share = 4/5 x 3/10
                        = 12/50
New ratio between partners = 20/50 :8/50:12/50:1/5 or 10/25 : 4/25 : 6/25 : 5/25
                                        = 10:4:6:5

D's share in yearly profit = 160000 x 1/5
                                        = ₹32000
As D joins on 1st Oct 2022 so his profit will be for 6 months = 32000 x 6/12
                                                                                               = ₹16000
D's guaranteed profit is ₹35000. According to it, 6 months profit will be = 35000 x 6/12
                                                                                                                = ₹17500
Deficiency of partner D = 17500 - 16000
                                   = ₹1500

The deficiency is to be borne by old partners in old PSR.
B's Share of deficiency = 1500 x 2/10
                                  = 300