Kavita and Lalita are partners, sharing profits in the ratio of . They decide to admit Mohan for share in future profits with a guaranteed amount of . Both Kavita and Lalita undertake to meet the liability arising due to the guaranteed amount to Mohan in their respective profit-sharing ratio. The firm earned profits of for the year 2022–23. The deficiency borne by Kavita is:
- A
- B
- C
- D
Solution & Step-by-step Explanation
Step-by-step breakdown:Calculate Mohan's raw calculated share of profit:
Determine the total shortfall/deficiency:
Distribute deficiency between existing partners:Kavita and Lalita bear this in their profit-sharing ratio of .
Determine the total shortfall/deficiency:
Distribute deficiency between existing partners:Kavita and Lalita bear this in their profit-sharing ratio of .