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A, B and C share profits in the ratio 5 : 3 : 2. C's deficiency is Rs 16,000 and A and B will bear it in their remaining profit ratio. How much will A bear?

Answer and explanation

Correct answer: Rs 10000

'Remaining profit ratio' between A and B means consider only A and B: 5 : 3. Total parts = 5 + 3 = 8. A's share = \(\frac{5}{8}\times 16000 = 10000\) rupees, so A bears Rs 10,000. Closest distractor Rs 8,000 is actually B's share (\(\frac{3}{8}\times 16000\)); Rs 6,000 reflects a calculation error and Rs 16,000 would mean A alone bore the entire deficiency. Exam tip: allocate deficiency only among the partners who are specified to bear it, using their mutual ratio (exclude others).

Related tags

Partnership AccountsProfit DistributionDeficiencySharing RatioPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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