Question
Accountancy Question on Reconstitution of Partnership
Kavita and Lalita are partners sharing profits in the ratio of 2:1. They decide to admit Mohan for 1/4th share in future profits with a guaranteed amount of ₹25,000.Both Kavita and Lalita undertake to meet liability arising due to gauranteed amount to Mohan in their respective profit sharing ratio. The firm earned profits of ₹76,000 for the year 2022-23. The deficiency borne by Kavita is
A
₹4,000
B
₹2,000
C
₹6,000
D
₹4,500
Answer
₹2,000
Explanation
Solution
Kavita and Lalita share profits in the ratio of 2:1, so the guaranteed shortfall is shared in this ratio. Deficiency = ₹25,000 - (Mohan’s 1/4 share of ₹76,000), which Kavita and Lalita share. Kavita bears ₹2,000.
Hence, Option 2.