Question

Kavita and Lalita are partners sharing profits in the ratio of 2:1. They decide to admit Mohan for 1/4th share in future profits with a guaranteed amount of ₹25,000.Both Kavita and Lalita undertake to meet liability arising due to gauranteed amount to Mohan in their respective profit sharing ratio. The firm earned profits of ₹76,000 for the year 2022-23. The deficiency borne by Kavita is

• A. ₹2,000
• B. ₹4,000
• C. ₹6,000
• D. ₹4,500

Answer 1

The Correct Option is B

The problem requires calculating Mohan's profit share for 2022-23, identifying any shortfall from his guaranteed amount, and then determining Kavita's responsibility for that shortfall.

1. Calculate total profits:
   Total profits for 2022-23 amounted to ₹76,000.
2. Determine Mohan's profit share:
   Mohan's share was calculated as (1/4) × ₹76,000, resulting in ₹19,000.
3. Compare Mohan's share to his guaranteed amount:
   The guaranteed amount was ₹25,000. The deficiency is ₹25,000 - ₹19,000 = ₹6,000.
4. Determine Kavita's share of the deficiency:
   Kavita and Lalita share profits and losses in a 2:1 ratio. Therefore, Kavita's portion of the deficiency is (2/3) × ₹6,000 = ₹4,000.

Kavita is responsible for ₹4,000 of the deficiency.