Question

Mahi, Ruhi, and Ginni are partners in a firm sharing profits and losses in the ratio of 6 : 4 : 1. Mahi guaranteed a profit of Rs.50,000 to Ginni. Net profit for the year ending 31 superscript{st March, 2023, was Rs.1,10,000. Mahi’s share in the profit of the firm after giving the guaranteed amount to Ginni will be:}

• A. Rs.20,000
• B. Rs.60,000
• C. Rs.40,000
• D. Rs.10,000

Hint:

When a partner guarantees a profit to another, calculate the shortfall after distributing profits in the agreed ratio and adjust the share of the partner providing the guarantee.

Answer 1

The Correct Option is A

Step 1: Distribute profit as per the profit-sharing ratio:
The total profit available is Rs.1,10,000. Distribute the profit among Mahi, Ruhi, and Ginni in the ratio \(6 : 4 : 1\): \[ {Mahi’s Share: } Rs.1,10,000 \times \frac{6}{11} = Rs.60,000. \] \[ {Ruhi’s Share: } Rs.1,10,000 \times \frac{4}{11} = Rs.40,000. \] \[ {Ginni’s Share: } Rs.1,10,000 \times \frac{1}{11} = Rs.10,000. \] Step 2: Calculate Ginni’s guaranteed amount and shortfall:
Ginni is guaranteed a profit of Rs.50,000. Her allocated share is Rs.10,000, so the shortfall is: \[ Rs.50,000 - Rs.10,000 = Rs.40,000. \] Step 3: Adjust Mahi’s share for the guarantee:
The shortfall of Rs.40,000 is borne by Mahi. Adjusting Mahi’s share: \[ {Mahi’s Final Share: } Rs.60,000 - Rs.40,000 = Rs.20,000. \] Conclusion:
Mahi’s share in the profit of the firm after giving the guaranteed amount to Ginni is \( Rs.20,000 \).