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A total profit of Rs 10,000 was shared equally, but the correct ratio was 3:2. How much excess or shortfall did B have?

Answer and explanation

Correct answer: Rs 1,000 excess

The governing concept is comparison of the amount actually received with the amount due under the correct ratio. Equal sharing gave B one-half of Rs 10,000, so B actually received Rs 5,000. In the correct ratio 3:2, B's share is 2/5 of Rs 10,000, which equals Rs 4,000. Therefore B received Rs 5,000 − Rs 4,000 = Rs 1,000 in excess. Option A is correct. Option B reverses the comparison, option C uses an incorrect difference, and option D ignores that equal sharing is not the same as a 3:2 allocation. The excess would be adjusted against the partner who received less.

Related tags

Wrong Profit SharingNumerical AdjustmentPartner ShareAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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