Multiple choice

A and B admitted C as a partner by giving him assurance for his profits not to be less than Rs. 1,00,000 in any year. The profit ratio was decided as 5 : 3 : 2. The profits for the year amounted to Rs. 4,00,000. What will be the share of B?

  1. Rs. 1,12,500

  2. Rs. 1,87,500

  3. Rs. 2,00,000

  4. Rs. 1,10,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

As C is to be given a minimum of Rs.1,00,000, the profit being insufficient, so he will get Rs. 1,00,000 and the rest of Rs. 3,00,000 will be divided among A and B in 5 : 3. Thus, A's share = Rs.1,87,500 B's share = Rs. 1,12,500

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