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A B and C have capitals of ₹100000 ₹150000 and ₹250000 respectively. Profit ratio is equal. Interest on capital is 6% and profit is ₹90000. What is C's total share?

Answer and explanation

Correct answer: ₹35000

Direct answer: Option A, ₹35,000. Interest on capital is calculated separately for each partner at 6%. A receives ₹100,000 × 6% = ₹6,000. B receives ₹150,000 × 6% = ₹9,000. C receives ₹250,000 × 6% = ₹15,000. Total interest on capital is ₹30,000. The firm’s profit is ₹90,000, so the profit remaining after interest is ₹90,000 − ₹30,000 = ₹60,000. Since the profit-sharing ratio is equal, the remaining amount is divided equally: ₹60,000 ÷ 3 = ₹20,000 for each partner. C’s total share is his capital interest plus his equal share of the remainder: ₹15,000 + ₹20,000 = ₹35,000. Option A is correct. Option B, ₹45,000, overstates C’s amount. Option C, ₹30,000, omits C’s share of residual profit. Option D, ₹40,000, uses an incorrect addition or division. This assumes the profit is sufficient to provide the stated interest. Memory cue: partner’s total receipt here equals interest on capital plus equal share of the balance.

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PartnershipInterest On CapitalTotal Share

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