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A and B share profits in the ratio 5:5. Before the normal distribution of profit, A is to receive a bonus of ₹25,000. If the total profit is ₹90,000, what will be B's share of profit?

Answer and explanation

Correct answer: ₹32,500

A's bonus of ₹25,000 is deducted from the total profit before the remaining profit is shared. Profit available for distribution = ₹90,000 − ₹25,000 = ₹65,000. Since 5:5 means equal sharing, B's share is ₹65,000 ÷ 2 = ₹32,500. ₹45,000 is incorrect because it ignores the deduction of the bonus. Exam tip: When a bonus is paid before profit sharing, subtract it from total profit first and distribute the balance among the partners.

Related tags

PartnershipProfit SharingPartner BonusAdjustmentsPartnership AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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