Question

A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. It was provided that B’s share of profit will not be less than ₹ 1,50,000 per annum. The losses for the year ended 31st March, 2024, were ₹ 80,000 before allowing interest on Loan of ₹ 2,00,000 taken from A on 1st June, 2023.

The share of each partner’s profit/loss will be:

Options

• A (Loss) ₹ 1,40,000; B (Profit) ₹ 1,20,000; C (Loss) ₹ 70,000

• A (Loss) ₹ 1,20,000; B (Profit) ₹ 1,80,000; C (Loss) ₹ 60,000

• A (Loss) ₹ 1,60,000; B (Profit) ₹ 1,50,000; C (Loss) ₹ 80,000

• A (Loss) ₹ 1,80,000; B (Profit) ₹ 1,50,000; C (Loss) ₹ 90,000

Answer 1

A (Loss) ₹ 1,60,000; B (Profit) ₹ 1,50,000; C (Loss) ₹ 80,000

Explanation:

Loss for the year = ₹ 80,000

Interest on A’s Loan = `2,00,000 xx 6/100 xx 10/12`

= 10,000

Total Net Loss = 80,000 + 10,000

= 90,000

Distribution of Profit/Loss
Particulars	A (₹)	B (₹)	C (₹)
Loss of ₹ 90,000 divided in 4 : 3 : 2	(40,000)	(30,000)	(20,000)
Since B is guaranteed a minimum profit of ₹ 1,50,000 whereas loss debited to his Capital A/c is ₹ 30,000, hence he will be Credited by ₹ 1,80,000 borne by A and C in 4 : 2	(1,20,000)	1,80,000	(60,000)
	(1,60,000)	1,50,000	(80,000)