Profit Distribution

Interest on capital is appropriation not expense. So net profit should be increased correctly and it should be debited in appropriation account.

Cs normal share is Rs 30000 and deficiency is Rs 20000. After giving C Rs 50000 A and B share Rs 310000 in ratio eight to three.

Commission is on profit after charging commission so use (295000 \times \frac{18}{118}). The answer is Rs 45000.

The direct answer is option A, approximately Rs 85,714. A is exempted from loss, so the entire loss must be divided only between B and C. Their old ratio is 5:2. The total number of relevant parts is 7. B receives 5 of these 7 parts. Therefore B’s loss is \\(120000\\times\\frac{5}{7}=85714.285...\\), approximately Rs 85,714. Option A is correct. Option B, Rs 60,000, divides the loss equally and ignores the 5:2 ratio. Option C, approximately Rs 34,286, is C’s share, because it equals \\(120000\\times\\frac{2}{7}\\), not B’s share. Option D, Rs 120,000, is the entire loss and would wrongly charge all of it to B. The important point is that A’s exemption removes A from the loss-sharing calculation; it does not mean that A’s original ratio remains in the denominator. Memory cue: exempt partner out, remaining partners’ ratio in.

Reserve = 12% of Rs 360000 = Rs 43200. Remaining profit = Rs 360000 − Rs 43200 = Rs 316800. Commission = 7% of Rs 316800 = 0.07×316800 = Rs 22176. Option B (Rs 25200) is wrong because it applies 7% to the total profit instead of to the profit after reserve. Exam tip: always subtract prescribed reserves or prior charges first, then compute any percentage-based commission on the remaining amount.

First deduct the salary: 410,000 − 60,000 = 350,000. B's commission = 16% of the remaining profit = 0.16 × 350,000 = 56,000. Hence B's commission is Rs 56,000. Why other options are wrong: option B (65,600) arises from mistakenly applying 16% to the pre-salary profit (410,000). Option D (60,000) is just A's salary, not a commission. Exam tip: always perform deductions in the order stated before calculating any percentage-based commission.

Debit items are Rs 220000 and remaining profit is Rs 290000. As six eleventh share is about Rs 158182.

Debiting instead of correct credit creates a double difference. Therefore distributable profit is understated by Rs 28000.

Salary is a debit appropriation item but it was credited. Compared with correct position remaining profit is overstated by Rs 64000.

Cs normal share is Rs 100000 and deficiency is Rs 10000. After giving C Rs 110000 A and B share Rs 190000 in ratio four to six.

Total salary is Rs 150000 and remaining profit is Rs 300000. Cs five twelfth share is Rs 125000 and with salary total is Rs 155000.

Interest on drawings is credited in appropriation account. So available amount is Rs 160000 plus Rs 10000 equal to Rs 170000.

Total claim is Rs 190000 and salary share is twelve nineteenth. Twelve nineteenth of Rs 170000 is about Rs 107368.

Cs normal share is one twelfth which is Rs 30000. Guarantee is Rs 48000 so deficiency is Rs 18000.

Core concept: With ratio 9:2 the total parts = 9+2 = 11, so A's share = 9/11 of the deficiency. Calculation: \(\frac{9}{11}\times 18,000=\frac{162,000}{11}\approx 14,727.27\). Thus A bears about Rs 14,727.27. The closest distractor (option B) equals 2/11 of Rs 18,000, which is B's share (~Rs 3,272.73), so it's incorrect for A. Exam tip: always add the ratio parts first; then multiply the required part by the total.

Profit after salary is Rs 400000. Reserve is created later so six percent commission is Rs 24000.

Interest on partner loan is an expense of the firm. It is taken to Profit and Loss Account not appropriation account.

A received Rs 75000 wrongly. Correct share is salary Rs 30000 plus two fifths of Rs 120000 which is Rs 78000 so A should be credited Rs 3000.

Crediting an item that should be debited creates a double effect. Therefore distributable profit is overstated by Rs 120000.

Cs normal share was Rs 120000 because Rs 10000 deficiency was added separately. If six twelfth share is Rs 120000 total profit is Rs 240000.

The available profit of ₹96,000 is less than the total interest claim of ₹1,20,000, so it is distributed in the claim ratio 5:7. The total ratio parts are 5 + 7 = 12. A receives 5/12 × ₹96,000 = ₹40,000.

A gets fifteen percent which is Rs 63000. From remaining Rs 357000 Cs three seventh share is Rs 153000.

As normal share is Rs 80000 so deficiency is Rs 20000. Bs normal share was Rs 80000 and after bearing deficiency it becomes Rs 60000.

Definition: Deficiency is recognized only when the guarantee exceeds the normal share, and then deficiency = guarantee − normal share. Here the normal share (₹85,000) is greater than the guarantee (₹80,000), so no deficiency arises. The closest distractor Rs 5,000 is wrong — it reflects the difference taken in the wrong direction. Exam tip: Always compare the two amounts first; calculate difference only if guarantee > normal share.

Deduct B's fixed salary first: Rs 375000 − Rs 60000 = Rs 315000 remaining. Total ratio = 3+7+5 = 15. A's share = \(\frac{3}{15}\) of remaining = \(\frac{3}{15}\times 315000 = 63000\). Option B is incorrect because it equals \(\frac{3}{15}\) of the total profit without deducting B's salary (\(\frac{3}{15}\times 375000 = 75000\)). Exam tip: always deduct guaranteed payments (salary, interest) before distributing the residual profit by ratio.