Multiple choice

Mickey, Tom and Jerry were partners in the ratio of 5 : 3 : 2. On 31st March, 2021, their books reflected a net profit of Rs. 2,10,000. As per the terms of the partnership deed, they were entitled for interest on capital which amounted to Rs. 80,000, Rs. 60,000 and Rs. 40,000, respectively. Besides this, a salary of Rs. 60,000 each was payable to Mickey and Tom. Calculate the ratio in which the profits would be appropriated.

  1. 1 : 1 : 1

  2. 5 : 3 : 2

  3. 7 : 6 : 2

  4. 4 : 3 : 2
Reveal answer Fill a bubble to check yourself
C Correct answer
AI explanation

The total appropriations are interest on capital plus salaries: Mickey gets 80000 plus 60000 equal to 140000, Tom gets 60000 plus 60000 equal to 120000, and Jerry gets 40000. This yields an appropriation ratio of 140000 to 120000 to 40000. Simplifying this ratio by dividing by 20000 gives the result 7 to 6 to 2.

Keep practicing — related questions