Question

E, F and G are partners sharing profits in the ratio of 3 : 3 : 2. As per the partnership agreement, G is to get a minimum amount of ₹ 80,000 as his share of profits every year and any deficiency on this account is to be personally borne by E. The net profit for the year ended 31st March 2020 amounted to ₹ 3,12,000. What will be the amount of deficiency to be borne by E?

Options

• ₹ 1,000

• ₹ 4,000

• ₹ 8,000

• ₹ 2,000

Answer 1

₹ 2,000

Explanation:

G's Share = `2/8 xx ₹ 3,12,000` = ₹ 78,000

Deficiency to be borne by E = ₹ 80,000 − ₹ 78,000 = ₹ 2,000