Multiple choice

E, F and G are partners sharing profit in the ratio 3 : 3 : 2. According to the partnership agreement, G is to get a minimum amount of Rs. 80,000 as his share of profit every year and any deficiency on this account is to be personally borne by E. The net profit for the year ending 31st March 2021 amounted to Rs. 3,12,000. Calculate the amount of deficiency to be borne by E.

  1. Rs. 1,000

  2. Rs. 4,000

  3. Rs. 8,000

  4. Rs. 2,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Total profit is 3,12,000. G's share is (2/8) * 3,12,000 = 78,000. The guaranteed minimum is 80,000. The deficiency is 80,000 - 78,000 = 2,000, which E must cover.

AI explanation

The total profit of Rs 3,12,000 is divided among E, F, and G in the ratio 3 : 3 : 2, meaning G's calculated share is 2/8 of 312000, which equals Rs 78,000. The partnership agreement guarantees G a minimum profit of Rs 80,000, creating a deficiency of 80000 minus 78000, which is Rs 2,000. This Rs 2,000 deficiency is personally borne by E.

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