Question

P, Q and R are partners in 3 : 2 : 1. R is guaranteed that his share of profit will not be less than ₹ 70,000. Any deficiency will be borne by P and Q in the ratio of 2 : 1. The firm’s profit was ₹ 2,40,000. Share of P will be ______.

Options

• ₹ 1,00,000

• ₹ 1,10,000

• ₹ 1,20,000

• ₹ 1,02,000

Answer 1

P, Q and R are partners in 3 : 2 : 1. R is guaranteed that his share of profit will not be less than ₹ 70,000. Any deficiency will be borne by P and Q in the ratio of 2 : 1. The firm’s profit was ₹ 2,40,000. Share of P will be ₹ 1,00,000.

Explanation:

The profit-sharing ratio between P, Q, and R is 3 : 2 : 1.

The firm’s total profit is ₹ 2,40,000.

According to the ratio:

P’s initial share = `2,40,000 xx 3/6`

= 1,20,000

Q’s initial share = `2,40,000 xx 2/6`

= 80,000

R’s initial share = `2,40,000 xx 1/6`

= 40,000

R is guaranteed a minimum of ₹ 70,000, so there is a deficiency of ₹ 30,000 (70,000 − 40,000).

The deficiency is shared between P and Q in the ratio 2 : 1.

P’s contribution to deficiency = `30,000 xx 2/3`

= 20,000

Q’s contribution to deficiency = `30,000 xx 1/3`

= 10,000

Adjusted share of P = 1,20,000 − 20,000

= 1,00,000