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:

When one partner's profit share and the PSR are known, find the value of 'one part' of the ratio first. Then multiply this value by the ratio part of the partner whose share you need to find.

Answer 1

The Correct Option is D

Step 1: Establish the relationship between Radhika's profit share and her portion of the ratio:
Profit Sharing Ratio = Radhika : Mehar : Shubha = 9 : 8 : 7.
Radhika's share, representing 9 parts, amounts to Rs 5,40,000.
Step 2: Determine the monetary value of a single ratio part:
Value of 1 part = Radhika's Profit / Radhika's Ratio Part
Value of 1 part = Rs 5,40,000 / 9 = Rs 60,000.
Step 3: Compute Shubha's profit share:
Shubha's Ratio Part = 7.
Shubha's Share = Value of 1 part \( \times \) Shubha's Ratio Part
Shubha's Share = Rs 60,000 \( \times \) 7 = Rs 4,20,000.
Conclusion:
Shubha's allocated profit share is Rs 4,20,000.