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In a partnership, A and B share profits in the ratio \(3:2\). The firm incurs a loss of \(\text{Rs }50,000\). Find B's share of the loss.

Answer and explanation

Correct answer: \(\text{Rs }20,000\)

Total profit-sharing ratio \(=3+2=5\). B's share of loss is proportional to its ratio \(\frac{2}{5}\).
So B's loss \(=\frac{2}{5}\times 50,000=20,000\). Hence B's share is \(\text{Rs }20,000\).

Related tags

AccountancyPartnershipProfit DistributionLoss Sharing

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