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If the net profit is Rs 50,000 and A and B share profits in the ratio 3 : 2, what is B's share when there are no other adjustments?

Answer and explanation

Correct answer: Rs 20,000

Total parts = 3 + 2 = 5. B's share = 2 parts = 2/5 of the profit. So B's share = (2/5) × Rs 50,000 = Rs 20,000. Option C (Rs 25,000) would be half of the profit and is incorrect; option B (Rs 30,000) equals 3/5 which corresponds to A's portion, not B's. Exam tip: First add the ratio numbers to get total parts, then multiply the required part by total profit.

Related tags

Profit ShareNo AdjustmentNumericalPartnership AccountsRatio DistributionAdjustmentsPartnership Accounts Basic ConceptsAccountancy

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