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A and B share profits in the ratio 3:2. After adjustments, the remaining profit is Rs 50,000. What is A’s share?

Answer and explanation

Correct answer: Rs 30,000

The governing concept is distribution of the residual profit according to the agreed profit-sharing ratio. The ratio 3:2 contains 3 + 2 = 5 total parts, of which A is entitled to 3 parts. A’s share is therefore calculated as (3/5) × Rs 50,000. First, Rs 50,000 ÷ 5 = Rs 10,000 per ratio part; multiplying by A’s three parts gives Rs 30,000. B receives the remaining two parts, or Rs 20,000, and the two shares together equal the full Rs 50,000. Option B is B’s share, option C incorrectly divides the profit equally, and option D assigns the entire profit to A. Hence option A is the only answer consistent with the stated ratio.

Related tags

Profit-Sharing RatioResidual ProfitPartnership CalculationProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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