Profit Distribution

The special clause makes salary a charge. Deducting salary thirty five thousand from profit twelve thousand creates loss of twenty three thousand.

Profit for first four months is sixty thousand and A gets twenty thousand. Profit for next eight months is one lakh twenty thousand and A gets seventy two thousand so total is ninety two thousand.

In first period A gets one third of sixty thousand which is twenty thousand. In second period A gets three fifths of one lakh twenty thousand which is seventy two thousand total ninety two thousand.

Total sales are eight lakh and second period share is five eighths. Five eighths of one lakh sixty thousand is one lakh rupees.

Reserve is deducted first. After deducting thirty five thousand from one lakh only sixty five thousand is available for interest on capital.

Interest on partner loan is a charge and has already been deducted. Deducting it again understates distributable profit by fifteen thousand.

It should have been credited but was debited. Difference from correct position is double which means lower by twenty four thousand rupees.

Interest on capital should have been debited but was credited. Difference from correct position is double which is forty thousand rupees.

A actual total benefit is twenty thousand plus thirty thousand which is fifty thousand. Guarantee is sixty thousand so deficiency is ten thousand.

The direct answer is option A: no deficiency, because B’s actual share is Rs 75,000. The total ratio is 5:3:2, so total parts are 10. B has 3 parts. His share is \\(250000\\times\\frac{3}{10}=75000\\) rupees. The guaranteed amount is also Rs 70,000. Since the actual share of Rs 75,000 is greater than the guarantee by Rs 5,000, there is no deficiency to be paid. Option A is correct because the guarantee is a minimum amount, not an amount added automatically when the actual share is higher. Option B, Rs 5,000, is the difference between actual share and guarantee, but it is a surplus, not a deficiency. Option C, Rs 70,000, incorrectly treats the guarantee itself as the deficiency. Option D, Rs 25,000, has no basis in the ratio or the figures. The proper order is to calculate the guaranteed partner’s normal share and compare it with the guaranteed amount. Memory cue: deficiency exists only when actual share is less than guaranteed share.

C is excluded from losses so A and B share loss in five to three. A five eighths share is sixty two thousand five hundred.

Debit side excess means loss. B share is three fifths of thirty thousand which is eighteen thousand debit.

The governing concept is proportionate distribution of a limited appropriation when the available profit is less than the total salary entitlement. The claimed salaries are Rs 40,000 for A and Rs 20,000 for B, giving a total claim of Rs 60,000. Available profit is only Rs 48,000, so it must be divided in the salary ratio 40,000:20,000, or 2:1. A’s share is therefore Rs 48,000 × 40,000/60,000 = Rs 32,000. Option A is correct. Option B is A’s full claim rather than the available proportion, while C and D use incorrect proportions.

If the deed gives order salary gets priority. Later appropriation is not allowed when no profit remains.

A sales commission is twenty thousand and B profit commission is fifteen thousand. Total commission is thirty five thousand rupees.

Total agreed salaries = ₹30,000 + ₹15,000 = ₹45,000, which exceeds available profit ₹27,000, so pay salaries proportionately. Ratio A:B = 30,000:15,000 = 2:1. Therefore B's share = (1/(2+1)) × 27,000 = ₹9,000. Option B (₹15,000) is wrong because it is the full agreed salary and would be payable only if profit were sufficient; option C (₹18,000) results from a miscalculation of the ratio. Exam tip: always compare total agreed salaries with available profit first — if insufficient, divide the available amount in the salary ratio.

When deed is silent profit is shared equally. Even with unequal capitals A receives twenty five thousand.

Distributable profit is two lakh plus ten thousand minus fifty thousand minus twenty thousand equal to one lakh forty thousand. A three sevenths share is sixty thousand.

After salary the base is seventy eight thousand. Since commission is after charging commission seventy eight thousand times twenty divided by one hundred twenty equals thirteen thousand.

A loss share is thirty thousand debit and salary is twenty five thousand credit. Net effect is debit five thousand rupees.

The profit of partner bearing deficiency decreases. A and C bear equally so A account is debited by six thousand.

In after commission basis the commission itself reduces the base. So the method using one hundred plus rate is needed.

The direct answer is option A: distributable profit will be overstated by ₹50,000. A reserve of ₹25,000 should have been debited. A debit reduces the amount available for distribution by ₹25,000. Instead, it was credited. A credit increases the amount by ₹25,000. Comparing the wrong treatment with the correct treatment gives an error of ₹25,000 + ₹25,000 = ₹50,000. Equivalently, correct effect is −₹25,000, while the recorded effect is +₹25,000; the difference is ₹50,000. Option A is correct. Option B, ₹25,000 overstated, counts only one side of the reversal and misses the difference between a debit and a credit. Option C, ₹50,000 understated, has the direction backwards: crediting instead of debiting makes distributable profit appear higher, not lower. Option D, no effect, is wrong because changing a debit into a credit directly changes the balance available for distribution. Memory cue: when the sign changes from debit to credit, the error is twice the amount, and the distributable figure is overstated.

C actual share is seventy five thousand which is above guarantee. So there is no deficiency and A share is three tenths or forty five thousand.

C actual share is seventy five thousand so deficiency is five thousand. A bears two thousand five hundred from forty five thousand so final profit is forty two thousand five hundred.