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A, B and C share profits in the ratio 2:2:1. If the remaining profit is Rs 75,000, how much will A and B together receive?

Answer and explanation

Correct answer: Rs 60,000

The governing concept is finding a combined share from a profit-sharing ratio. In the ratio 2:2:1, the total number of parts is 2+2+1=5. A receives 2 parts and B receives 2 parts, so together they receive 4 parts. Their combined amount is therefore 4/5×Rs 75,000 = Rs 60,000. C receives the remaining 1/5, equal to Rs 15,000, and the two amounts total Rs 75,000. Hence option A is correct. Option B is not the combined entitlement, option C is C’s individual share, and option D assigns the entire profit to A and B while ignoring C’s agreed share. The ratio must be applied to the whole profit.

Related tags

Profit RatioCombined SharePartnership CalculationProfit DistributionPartnership AccountsAccountancyClass 12 McqPartnership Accounts Basic Concepts

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