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If the partners share profits in the ratio 2:5 and the profit to be distributed is ₹21,000, what will be the share of the partner having the larger ratio?

Answer and explanation

Correct answer: ₹15,000

The total ratio is 2 + 5 = 7. The partner with the larger ratio is entitled to \(\frac{5}{7}\) of the profit. Therefore, the share is \(₹21,000 \times \frac{5}{7} = ₹15,000\). Exam tip: always divide by the sum of the ratio terms before multiplying by the relevant partner’s term.

Related tags

Partnership DissolutionProfit Sharing RatioPartners ShareRatio CalculationClosing The BusinessDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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