A B C share profits in ratio five to five to two. A is exempted from loss. Total loss is Rs 120000 and B C will share loss in old ratio. How much will B bear?

Correct answer: About Rs 85714

The direct answer is option A, approximately Rs 85,714. A is exempted from loss, so the entire loss must be divided only between B and C. Their old ratio is 5:2. The total number of relevant parts is 7. B receives 5 of these 7 parts. Therefore B’s loss is \\(120000\\times\\frac{5}{7}=85714.285...\\), approximately Rs 85,714. Option A is correct. Option B, Rs 60,000, divides the loss equally and ignores the 5:2 ratio. Option C, approximately Rs 34,286, is C’s share, because it equals \\(120000\\times\\frac{2}{7}\\), not B’s share. Option D, Rs 120,000, is the entire loss and would wrongly charge all of it to B. The important point is that A’s exemption removes A from the loss-sharing calculation; it does not mean that A’s original ratio remains in the denominator. Memory cue: exempt partner out, remaining partners’ ratio in.