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K and Kh share profits and losses in the ratio 5:3. If the realisation profit is ₹32,000, how much will Kh receive?

Answer and explanation

Correct answer: ₹12,000

The governing concept is distribution of realisation profit in the agreed profit-sharing ratio. The total ratio is 5 + 3 = 8 parts, and Kh is entitled to 3 of those 8 parts. Therefore, Kh's share is ₹32,000 × 3/8 = ₹12,000. The profit is credited to Kh's capital account because it increases the amount due to him on dissolution. Option A is correct. ₹20,000 is the share of K, who has five parts; ₹8,000 would represent only one-fourth of the profit and does not follow the ratio; and ₹32,000 is the total profit, not Kh's individual share. The calculation assumes no additional adjustment affects the stated distribution.

Related tags

Realisation ProfitProfit-Sharing RatioPartner Capital AccountPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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