Question

Radhika, Mehar, and Shubha were partners in a firm sharing profits and losses in the ratio of 9:8:7. If Radhika's share of profit at the end of the year amounted to Rs 5,40,000, Shubha's share of profit will be:

• A. Rs 5,40,000
• B. Rs 4,80,000
• C. Rs 60,000
• D. Rs 4,20,000

Hint:

If you know the profit share of one partner and the profit-sharing ratio, you can easily calculate the profit share of another partner. First, find the value of one 'part' of the ratio by dividing the known share by the number of parts it represents. Then, multiply this value by the number of parts corresponding to the desired partner.

Answer 1

The Correct Option is D

To determine Shubha's profit share, we must first calculate the total profit based on Radhika's given profit share and the profit-sharing ratio.

The profit-sharing ratio for Radhika, Mehar, and Shubha is 9:8:7, respectively.

This means Radhika is entitled to 9 parts, Mehar to 8 parts, and Shubha to 7 parts of the profit.

Radhika's profit share for the year is provided as Rs 5,40,000.

The total number of parts in the profit ratio is calculated as:

Total ratio sum = 9 + 8 + 7 = 24 parts.

Radhika's share represents \( \frac{9}{24} \) of the Total Profit.

Given that \( \frac{9}{24} \) of the Total Profit equals Rs 5,40,000, we can determine the Total Profit (P):

The equation is: \( \frac{9}{24}P = 5,40,000 \).

Solving for P:

\[ P = \frac{5,40,000 \times 24}{9} \]

\[ P = \frac{1,29,60,000}{9} \]

\[ P = 14,40,000 \]

The Total Profit is Rs 14,40,000.

Now, we calculate Shubha's share of the profit:

Shubha's share is \( \frac{7}{24} \) of the Total Profit.

\[ \text{Shubha's share} = \frac{7}{24} \times 14,40,000 \]

\[ = \frac{1,00,80,000}{24} \]

\[ = 4,20,000 \]

Therefore, Shubha's share of the profit amounts to Rs 4,20,000.