CBSE 2025, Set 2

Question

John and Harry were partners in a firm sharing profits and losses in the ratio of 2: 1. On 1st April, 2023, they admitted Dinesh as a new partner 1/4th share in the profits of the firm with a guarantee that his share in the profits shall be at least ₹1,00,000. The net profit of the firm for the year ended 31st March, 2024 was ₹2,80,000. John's share in the profits of the firm after giving the guaranteed amount of profit to Dinesh will be : A). ₹ 1,40,000 B). ₹ 1,20,000 C). ₹ 1,00,000 D). ₹ 70,000

Edvaya · Accepted Answer

The correct answer is ₹ 1,20,000. (B) ₹ 1,20,000 **Explanation:** Total Profit = ₹ 2,80,000. Dinesh's guaranteed share = ₹ 1,00,000. (Since his normal share 1/4 × 2,80,000 = 70,000 is less than 1,00,000, he gets 1,00,000). Remaining profit to be shared by John and Harry = 2,80,000 - 1,00,000 = ₹ 1,80,000. John and Harry share this in their old ratio of 2:1. John's share = 1,80,000 × (2/3) = ₹ 1,20,000.

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Accountancy > Accounting For Partnership Firms > Fundamentals Of Partnership

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