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A, B and C share profits in the ratio 7 : 5 : 2. C's deficiency is Rs 21,000 which will be borne only by A and B in their profit ratio (7 : 5). How much will B bear?

Answer and explanation

Correct answer: Rs 8750

A and B share between themselves in the ratio 7 : 5, so their combined parts = 7 + 5 = 12. B's share of the deficiency = (5/12) × 21,000 = 5 × 1,750 = Rs 8,750. A common wrong choice (Rs 10,500) equals half of Rs 21,000 and would be chosen if one mistakenly assumed A and B share equally. Exam tip: when only some partners bear a loss/deficiency, work with the reduced ratio of those partners only (here 7:5).

Related tags

Partnership AccountsProfit DistributionDeficiencyRatioClass12 AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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