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A is guaranteed a minimum profit of ₹60,000, whereas his normal share of profit is ₹52,000. The deficiency will be borne by B and C in the ratio of 3:1. How much deficiency will B bear?

Answer and explanation

Correct answer: ₹6,000

The deficiency is the difference between the guaranteed minimum profit and A’s normal share: ₹60,000 − ₹52,000 = ₹8,000. Since B and C bear it in the ratio 3:1, B bears 3 out of the total 4 parts: ₹8,000 × 3/4 = ₹6,000. Therefore, the correct answer is ₹6,000. Exam tip: Divide the deficiency according to the stated ratio, not according to the partners’ normal profit shares.

Related tags

Partnership AccountsProfit GuaranteeDeficiencyRatio AdjustmentAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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