Question

Mahi, Ruhi, and Ginni are partners in a firm sharing profits and losses in the ratio of 6 : 4 : 1. Mahi guaranteed a profit of Rs.50,000 to Ginni. Net profit for the year ending 31 superscript{st March, 2023, was Rs.1,10,000. Mahi’s share in the profit of the firm after giving the guaranteed amount to Ginni will be:}

• A. Rs.20,000
• B. Rs.60,000
• C. Rs.40,000
• D. Rs.10,000

Hint:

When a partner guarantees a profit to another, calculate the shortfall after distributing profits in the agreed ratio and adjust the share of the partner providing the guarantee.

Answer 1

The Correct Option is A

Step 1: Profit Distribution by Ratio
Total available profit: Rs.1,10,000. Profit shared among Mahi, Ruhi, and Ginni in the ratio \(6 : 4 : 1\):\[ {Mahi’s Share: } Rs.1,10,000 \times \frac{6}{11} = Rs.60,000.\]\[ {Ruhi’s Share: } Rs.1,10,000 \times \frac{4}{11} = Rs.40,000.\]\[ {Ginni’s Share: } Rs.1,10,000 \times \frac{1}{11} = Rs.10,000.\]Step 2: Ginni's Guaranteed Amount and Shortfall Calculation
Ginni's guaranteed profit: Rs.50,000. Her allocated share: Rs.10,000. Shortfall:\[Rs.50,000 - Rs.10,000 = Rs.40,000.\]Step 3: Mahi's Share Adjustment for Guarantee
Mahi covers the Rs.40,000 shortfall. Mahi's adjusted share:\[ {Mahi’s Final Share: } Rs.60,000 - Rs.40,000 = Rs.20,000.\]Conclusion:
Mahi's final profit share after accounting for Ginni's guaranteed amount is \( Rs.20,000 \).