Question:medium

John and Harry were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1stApril, 2023, they admitted Dinesh as a new partner for \(\frac{1}{4}\) share in the profits of the firm with a guarantee that his share in the profits shall be at least \(₹1,00,000\). The net profit of the firm for the year ended 31stMarch, 2024 was \(₹2,80,000\). John’s share in the profits of the firm after giving the guaranteed amount of profit to Dinesh will be :

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Always subtract guaranteed amounts first, then distribute the balance among old partners.
Updated On: Feb 17, 2026
  • \(₹ 1,40,000\)
  • \(₹1,20,000\)
  • \(₹1,00,000\)
  • \(₹70,000\)
Show Solution

The Correct Option is B

Solution and Explanation

Total profit = \(₹2,80,000\)
Dinesh’s initial share = \(\frac{1}{4} \times 2,80,000 = ₹70,000\)
Dinesh’s guaranteed amount = \(₹1,00,000\). Deficiency = \(₹30,000\)
This deficiency is covered by John and Harry in their old ratio of 2 : 1
John’s portion of deficiency = \(\frac{2}{3} \times 30,000 = ₹20,000\)
Harry’s portion of deficiency = \(₹10,000\)
The profit remaining after Dinesh's guarantee = \(2,80,000 - 1,00,000 = ₹1,80,000\)
John’s share from remaining profit = \(\frac{2}{3} \times 1,80,000 = ₹1,20,000\)
John’s final share = John’s share from remaining profit - John’s share of deficiency = \(₹1,20,000 - 20,000 = ₹1,00,000\)
Confirming the calculation:
Profit after Dinesh’s share = \(2,80,000 - 1,00,000 = ₹1,80,000\)
John’s share of this profit = \(\frac{2}{3} \times 1,80,000 = ₹1,20,000\)
Subtracting John’s contribution to the deficiency (\(₹20,000\))
John’s total share = \(₹1,20,000 - 20,000 = ₹1,00,000\)
The correct answer is (C).
Final answer is (C) \(₹1,00,000\).
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