Question

Radhika, Mehar and Shubha were partners in a firm sharing profits and losses in the ratio of 9 : 8 : 7. If Radhika’s share of profit at the end of the year amounted to ₹ 5,40,000, Shubha’s share of profit will be:

Options

• ₹ 5,40,000

• ₹ 4,80,000

• ₹ 60,000

• ₹ 4,20,000

Answer 1

₹ 4,20,000

Explanation:

Total Profit = Share of Profit of Radhika × Reciprocal of her share

= ₹ 5,40,000 × `24/9`

= ₹ 14,40,000

Shubha’s Share in Profit = ₹ 14,40,000 × `7/24`

= ₹ 4,20,000