Total credit in appropriation account is Rs 250000. Debit items are salary Rs 40000 commission Rs 20000 and reserve Rs 30000. Remaining profit is shared by A and B in ratio seven to three. What is As share?

Correct answer: Rs 112000

The direct answer is option A, Rs 112,000. In a profit appropriation account, the total credit represents the profit available before the listed appropriations are deducted. First add the debit items: salary Rs 40,000 + commission Rs 20,000 + reserve Rs 30,000 = Rs 90,000. Next subtract this total from Rs 250,000: Rs 250,000 − Rs 90,000 = Rs 160,000. This is the remaining profit for A and B. Their ratio is 7:3, so the total number of parts is 10. A receives 7 parts out of 10: \\(160000\\times\\frac{7}{10}=112000\\). Therefore A’s share is Rs 112,000. Option A is correct because it follows both the deduction and ratio steps. Option B, Rs 160,000, is the whole remaining profit, not A’s share. Option C, Rs 48,000, does not result from the stated ratio or remaining profit. Option D, Rs 175,000, is not the required seven-tenths share and exceeds the available remainder. Memory cue: first subtract all appropriations, then multiply the remainder by the partner’s ratio part divided by total parts.