Question

A firm earned ₹90,000 profit. Mohit is guaranteed ₹40,000 for his \(\frac{1}{4}\) share. How much deficiency will others bear in 3:1 ratio?

• A. ₹5,000 and ₹10,000
• B. ₹13,125 and ₹4,375
• C. ₹5,000 and ₹15,000
• D. ₹7,000 and ₹10,00

Hint:

When guaranteed amount is higher than actual share, deficiency is borne by other partners in their agreed ratio by subtracting the shortfall from their shares.

Answer 1

The Correct Option is B

To resolve the issue, we must first ascertain the shortfall that other partners will incur after Mohit receives his guaranteed profit. Subsequently, this shortfall is to be distributed according to the ratio of 3:1.

1. Profit Distribution Overview:
Total profit generated by the firm amounts to ₹90,000.
Mohit's guaranteed profit share is ₹40,000, representing his \(\frac{1}{4}\) stake.

2. Calculation of Mohit's Actual Share:
Mohit's actual share, calculated based on his \(\frac{1}{4}\) portion of the total profit:
= \(\frac{1}{4} \times 90,000 = ₹22,500\)

3. Determination of the Deficiency:
Given Mohit's guaranteed amount of ₹40,000 and his actual share of ₹22,500, the deficiency is calculated as: Guaranteed Amount - Actual Share.
= ₹40,000 - ₹22,500 = ₹17,500

4. Deficiency to be Borne by Other Partners:
The total deficiency of ₹17,500 will be borne by the other partners in the specified ratio of 3:1.

5. Distribution of Deficiency in 3:1 Ratio:
Total parts in the ratio = 3 + 1 = 4.
Share of the first part = \(\frac{3}{4} \times 17,500 = ₹13,125\).
Share of the second part = \(\frac{1}{4} \times 17,500 = ₹4,375\).

Concluding Statement:
The other partners will bear ₹13,125 and ₹4,375 respectively, representing their share of the deficiency in the 3:1 ratio.