Question

Abhay, Boris, and Chetan were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Boris was guaranteed a profit of \rupee95,000. Any deficiency on account of this was to be borne by Abhay and Chetan equally. The firm earned a profit of \rupee2,00,000 for the year ended 31\textsuperscript{st March, 2023. The amount given by Abhay to Boris as guaranteed amount will be:}

• A. \rupee17,500
• B. \rupee35,000
• C. \rupee25,000
• D. \rupee10,000

Hint:

Profit guarantees are fulfilled by contributing partners based on the agreed terms, ensuring the guaranteed partner receives the committed profit.

Answer 1

The Correct Option is B

Total profit = \rupee2,00,000. Profit sharing of Boris as per ratio = $\frac{3}{10} \times 2,00,000 = \rupee60,000$. Shortfall for Boris = \rupee95,000 - \rupee60,000 = \rupee35,000. This shortfall is borne equally by Abhay and Chetan. Amount given by Abhay to Boris = $\frac{35,000}{2} = \rupee17,500$. Similarly, amount given by Chetan = \rupee17,500.