Question

Pooja and Kumari were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1st April, 2023, Noori was admitted for a new partner \( \frac{1}{4} \) share in the profits of the firm. Noori was guaranteed a minimum profit of 1,20,000. Any deficiency on this account was to be borne by Pooja and Kumari in their profit sharing ratio. During the year ended 31^st March, 2024, the firm earned a net profit of 3,60,000. The amount of deficiency borne by Pooja will be:

• A. \( 20,000 \)
• B. \( 1,20,000 \)
• C. \( 10,000 \)
• D. \( 1,60,000 \)

Hint:

In questions involving guaranteed profits to new partners, always compute the actual share first and then check for deficiency. If there’s any deficiency, distribute it among existing partners according to their profit-sharing ratio.

Answer 1

The Correct Option is A

Step 1: Total profit of the firm = \( 3,60,000 \)
Step 2: Noori's share = \( \frac{1}{4} \times 3,60,000 = 90,000 \)
Step 3: Guaranteed profit to Noori = \( 1,20,000 \)
Step 4: Deficiency in Noori’s share = \( 1,20,000 - 90,000 = 30,000 \)
Step 5: Deficiency is to be borne by Pooja and Kumari in the old ratio of 2 : 1
Step 6: Pooja’s share of deficiency = \( \frac{2}{3} \times 30,000 = 20,000 \)
Step 7: Kumari’s share of deficiency = \( \frac{1}{3} \times 30,000 = 10,000 \)