Pinki, Deepti and Kaku are partner's sharing profits in the ratio of 5:4:1. Kaku is given a guarantee that his share of profits in any given year would not be less than Rs 5000. Deficiency, if any, would be borne by Pinki and Deepu equally. Calculate the deficiency assumed by Pinki and Deepti for each case separately if profits for the year were:-
Case I - Rs 40,000
or
Case II - Rs 60,000
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Case I - Rs 500 each by Pinki and Deepti, Case II - RS 0 each by Pinki and Deepti
Kaku's guaranteed minimum profit is Rs 5,000.
-
Case I (₹40,000 profit):
Kaku’s normal share = 1/10 × 40,000 = ₹4,000 (< ₹5,000 guarantee)
Deficiency = ₹1,000, borne equally by Pinki & Deepti ⇒ ₹500 each. -
Case II (₹60,000 profit):
Kaku’s normal share = 1/10 × 60,000 = ₹6,000 (≥ ₹5,000)
Deficiency = ₹0 ⇒ ₹0 each.