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A, B and C share profits in the ratio 3:2:1. Total profit is Rs 210000. A is paid a salary of Rs 30000 before profit distribution. What is B's final share?

Answer and explanation

Correct answer: Rs 60000

Deduct the salary first: distributable profit = 210000 − 30000 = 180000. The ratio sum is 3+2+1 = 6, so B's share = (2/6) × 180000 = Rs 60000. Option B (Rs 70000) reflects the mistake of not deducting the salary: (2/6) × 210000 = 70000. Exam tip: always subtract pre-distribution items (salary, interest on capital etc.) before dividing profit by the partners' ratio.

Related tags

SalaryProfit SharingPartnership AccountsRatioAccountancyClass12Profit DistributionPartnership Accounts Basic Concepts

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