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A and B share profits in the ratio 5:3. If the distributable profit is Rs 96,000, what is A's share?

Answer and explanation

Correct answer: Rs 60000

Total ratio = 5 + 3 = 8 parts. A's share = \(\frac{5}{8}\) of Rs 96,000 = \(\frac{5}{8} \times 96{,}000 = 60{,}000\). Option (C) 48,000 is incorrect because it represents half of 96,000 (\(\frac{1}{2}\)), not five-eighths. Exam tip: always add the ratio parts first and then multiply the distributable profit by the required fraction.

Related tags

Profit RatioDistributable ProfitPartnership AccountsRatio ProblemsProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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