Question

Raju, Sohan, and Tina are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Tina is guaranteed a minimum amount of ₹40,000 as a share of profit every year. Any deficiency arising on that account shall be borne by Raju. If profit of the firm for the year ended 31st March, 2023 is ₹1,60,000, Raju will bear a deficiency of:
 

• A. ₹8,000
• B. ₹40,000
• C. ₹48,000
• D. ₹4,000

Hint:

Profit guarantees ensure a minimum profit to a partner, regardless of the firm's overall profit.

Answer 1

The Correct Option is A

Step 1: Calculate Tina's profit share. \[ \text{Tina's share of profit} = \frac{1}{5} \times 1,60,000 = ₹32,000. \] Step 2: Determine the deficiency. \[ \text{Deficiency} = ₹40,000 - ₹32,000 = ₹8,000. \] Since Raju is responsible for the deficiency, he will bear ₹8,000.