Vijay and Manohar share profits and losses in the ratio of 2:1 . They admit Prakash as a partner with 1/4 share in profits with a guarantee that his s - Accountancy MCQ CUET Accountancy 2025 27 May Shift 2 2026 | ExamTest.live

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Vijay and Manohar share profits and losses in the ratio of 2 : 1 . They admit Prakash as a partner with \frac{1}{4} share in profits with a guarantee that his share of profit will be at least Rs. 50, 000 . The net profit of the firm for the year ending March 31, 2015, was Rs. 1, 60, 000 . Calculate the amount of profit Vijay will get.

Solution & Step-by-step Explanation

Step 1: Calculate Prakash's basic share of profit. Total Firm Profit = Rs. 1, 60, 000 Prakash’s share = 1, 60, 000 \times \frac{1}{4} = Rs. 40, 000 Step 2: Determine the shortfall/deficiency.Prakash was guaranteed Rs. 50, 000 . Deficiency = 50, 000 - 40, 000 = Rs. 10, 000 Step 3: Allocate the remaining profit to Vijay and Manohar before adjustment. Remaining Profit = 1, 60, 000 - 40, 000 = Rs. 1, 20, 000 Vijay’s basic share = 1, 20, 000 \times \frac{2}{3} = Rs. 80, 000 Manohar’s basic share = 1, 20, 000 \times \frac{1}{3} = Rs. 40, 000 Step 4: Distribute the deficiency between Vijay and Manohar in their old ratio (2 : 1). Vijay’s share of deficiency = 10, 000 \times \frac{2}{3} = Rs. 6, 667 Step 5: Compute Vijay's final profit share. Vijay’s final share = 80, 000 - 6, 667 = Rs. 73, 333

Try it yourself before checking the explanation above.

Vijay and Manohar share profits and losses in the ratio of 2 : 1 . They admit Prakash as a partner with \frac{1}{4} share in profits with a guarantee that his share of profit will be at least Rs. 50, 000 . The net profit of the firm for the year ending March 31, 2015, was Rs. 1, 60, 000 . Calculate the amount of profit Vijay will get.

Rs. 60,333

Rs. 73,333

Rs. 50,300

Rs. 80,333

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