Profit Distribution

Correct answer: A. Rs 140000

Interest on drawings is added to net profit and appropriations are deducted. Rs 220000 plus Rs 10000 minus Rs 90000 equals Rs 140000.

Correct answer: A. Rs 80000

Cs normal share is Rs 30000 so deficiency is Rs 10000. As normal share was Rs 90000 and after bearing guarantee it becomes Rs 80000.

Correct answer: A. About Rs 3857

The direct answer is option A: approximately ₹3,857. The deficiency of ₹9,000 is to be borne only by A and B, and their ratio is their profit ratio, 4:3. Add their ratio parts: 4 + 3 = 7. B’s fraction is 3/7. Therefore B’s burden = ₹9,000 × 3/7 = ₹27,000/7 = ₹3,857.14 approximately. Rounded to the nearest rupee, this is about ₹3,857. Option A is correct. Option B, ₹4,500, would divide the deficiency equally, but the question requires the 4:3 ratio. Option C, ₹3,000, does not represent B’s 3/7 share; it would be one-third of the deficiency. Option D, approximately ₹5,143, is A’s share, because A bears 4/7 × ₹9,000 = ₹5,142.86. Check: approximately ₹5,143 + ₹3,857 = ₹9,000. The partner with the larger ratio bears the larger part. Memory cue: restrict the ratio to the partners bearing the deficiency, then divide.

Correct answer: A. Rs 18000

Total claim is Rs 60000 and Bs share is twenty seven sixtieth. His share in available profit will be Rs 18000.

Correct answer: A. Rs 58000

Sales commission is Rs 12000 and remaining profit is Rs 138000. One third share is Rs 46000 and total claim is Rs 58000.

Correct answer: A. Will receive Rs 12000 more

A received Rs 60000 under equal sharing. Correct share is Rs 72000 so A should receive Rs 12000 more.

Correct answer: A. Rs 84000

Interest on partner loan is an expense so it is deducted before appropriation. Correct profit available for appropriation is Rs 84000.

Correct answer: A. Net profit understated and appropriation debit omitted

Interest on capital is generally appropriation not expense. Treating it as expense understates net profit and omits correct debit in appropriation.

Correct answer: A. Rs 142500

Cs normal share is Rs 60000 so deficiency is Rs 15000. A bears half deficiency of Rs 7500 and final share is Rs 142500.

Correct answer: A. Rs 24000

For twenty percent commission after charging divide profit by one hundred twenty and multiply by twenty. On Rs 144000 commission is Rs 24000.

Correct answer: A. Rs 50000

A is not charged with loss. B and C share in ratio three to five so C bears five eighths which is Rs 50000.

Correct answer: A. 7200

Step 1: Compute the reserve = 10% of Rs 160,000 = Rs 16,000. Remaining profit = Rs 160,000 − Rs 16,000 = Rs 144,000. Commission = 5% of Rs 144,000 = Rs 7,200, so option A is correct. A common wrong approach (option B: Rs 8,000) is to calculate 5% on the full profit instead of on the profit after reserve. Exam tip: always deduct reserve and other prior charges first, then apply percentage-based commissions to the remaining amount.

Correct answer: A. Rs 15000

Total profit before salary = Rs 1,80,000. Deduct A's salary of Rs 30,000 first: net profit = Rs 1,80,000 − Rs 30,000 = Rs 1,50,000. B's commission = 10% of net profit = 10% of Rs 1,50,000 = Rs 15,000. The common wrong choice Rs 18,000 comes from mistakenly taking 10% of the profit before deducting salary. Exam tip: always deduct fixed items (salaries, guaranteed payments) before applying percentage-based commissions or profit-related shares.

Correct answer: A. Rs 112000

The direct answer is option A, Rs 112,000. In a profit appropriation account, the total credit represents the profit available before the listed appropriations are deducted. First add the debit items: salary Rs 40,000 + commission Rs 20,000 + reserve Rs 30,000 = Rs 90,000. Next subtract this total from Rs 250,000: Rs 250,000 − Rs 90,000 = Rs 160,000. This is the remaining profit for A and B. Their ratio is 7:3, so the total number of parts is 10. A receives 7 parts out of 10: \\(160000\\times\\frac{7}{10}=112000\\). Therefore A’s share is Rs 112,000. Option A is correct because it follows both the deduction and ratio steps. Option B, Rs 160,000, is the whole remaining profit, not A’s share. Option C, Rs 48,000, does not result from the stated ratio or remaining profit. Option D, Rs 175,000, is not the required seven-tenths share and exceeds the available remainder. Memory cue: first subtract all appropriations, then multiply the remainder by the partner’s ratio part divided by total parts.

Correct answer: A. Understated by Rs 16000

Debiting instead of correct credit creates a double difference. Therefore distributable profit is understated by Rs 16000.

Correct answer: A. Rs 55000

Cs normal share is Rs 30000 and deficiency is Rs 10000. Under firm guarantee remaining partners profit reduces so A receives Rs 55000.

Correct answer: A. Rs 75000

After total salary Rs 60000 remaining profit is Rs 150000. Bs three tenth share is Rs 45000 and with salary total is Rs 75000.

Correct answer: A. Rs 105000

Interest on drawings is a credit item and is added to available profit. Total available amount is Rs 105000.

Correct answer: A. About Rs 76364

Total claim is Rs 110000 and salary share is eighty out of one hundred ten. Salary out of available amount is about Rs 76364.

Correct answer: A. Rs 6000

Cs normal share is three tenths which is Rs 54000. Guarantee is Rs 60000 so deficiency is Rs 6000.

Correct answer: A. About Rs 2571.43

Total ratio = 3 + 4 = 7. A's share = \\(\frac{3}{7}\\) of the deficiency. So A bears \\(6000\times\frac{3}{7}=2571.428...\\), approximately Rs 2,571.43. Option B corresponds to B's share (\\(\frac{4}{7}\\) of 6000) and is therefore incorrect; C and D assume equal or full bearing and are also incorrect. Exam tip: convert the given ratio into a fraction of the total ratio: share = given part/(sum of parts) × total amount.

Correct answer: A. Rs 20,000

First deduct salary: profit after salary = Rs 2,50,000 − Rs 50,000 = Rs 2,00,000. Commission is 10% on this amount (before reserves), so commission = 10% of Rs 2,00,000 = Rs 20,000. The closest distractor Rs 25,000 is incorrect because it represents 10% of the total profit before deducting salary. Exam tip: always follow the specified order (salary, commission, reserve, etc.) when computing commission on profit.

Correct answer: A. Remove from appropriation and charge to Profit and Loss Account

Interest on loan is an expense before profit. It should be taken to Profit and Loss Account not appropriation account.

Correct answer: A. Rs 6000

Wrongly A received Rs 36000. Correctly A should get salary Rs 12000 plus half of remaining profit Rs 30000 which totals Rs 42000.

Correct answer: A. Rs 50000

Reserve should have been debited but was credited. So profit is overstated by twice the amount which is Rs 50000.