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If A and B share losses equally and loss is twenty thousand rupees what is A share?

Answer and explanation

Correct answer: Ten thousand rupees

When two partners agree to share losses equally, the total loss is divided into two identical parts. Each partner bears one-half of the firm’s loss, regardless of the fact that the loss is negative in the accounts. The important point is to divide the total amount by the number of equal sharing partners. Thus, the relevant choice is ten thousand rupees.

The total loss is ₹20,000 and there are two partners sharing it equally. A’s share is therefore ₹20,000 ÷ 2 = ₹10,000. B bears the other ₹10,000, and together the two shares make the complete loss of ₹20,000. The choices showing ₹20,000, ₹5,000, or ₹15,000 do not represent one of two equal portions.

Related tags

Loss SharingEqual RatioNumerical

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