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A and B share profits in the ratio 3:2. Net profit is Rs 50,000. A first gets a 20% bonus of profit and the remaining profit is shared. What is B's share?

Answer and explanation

Correct answer: Rs 16,000

The governing concept is sequential appropriation: A’s bonus is deducted first, and only the remaining profit is distributed in the agreed 3:2 ratio. A’s bonus is 20% of Rs 50,000, so it equals Rs 10,000. The residual profit is therefore Rs 50,000 − Rs 10,000 = Rs 40,000. The ratio 3:2 contains five parts, and B is entitled to two parts. Thus B’s share is 2/5 × Rs 40,000 = Rs 16,000. Option A is correct. Option B is the entire residual profit before division, option C is A’s bonus rather than B’s share, and option D does not correspond to B’s two-fifths share. The total check is Rs 10,000 + Rs 24,000 + Rs 16,000 = Rs 50,000.

Related tags

Partner BonusRemaining ProfitProfit-Sharing RatioProfit DistributionPartnership AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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