E, F, and G share profits in the ratio of 4:3:2. G is given a guarantee that his share of profits will not be less than ₹75,000. Any deficiency will be borne equally by E and F. The firm's profit was ₹2,70,000. What is F's share of profit?

A. ₹90,000
B. ₹82,500
C. ₹97,500
D. ₹75,000

Question

High School

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Answer :

IsabellaRoseDavis IsabellaRoseDavis · Answer 1 · 2024-06-07T20:47:33-04:00

To solve this problem, we need to consider the profit-sharing ratio and the guarantee given to G.

Calculate the Profit Share Based on Ratio:
E, F, and G share profits in the ratio 4:3:2. This means for every 9 units of profit, E gets 4 units, F gets 3 units, and G gets 2 units.
The total profit is ₹2,70,000.
- Total parts = 4 + 3 + 2 = 9 parts
- Share per part = ₹2,70,000 / 9 = ₹30,000
- E’s share = 4 parts × ₹30,000 = ₹1,20,000
- F’s share = 3 parts × ₹30,000 = ₹90,000
- G’s share = 2 parts × ₹30,000 = ₹60,000
Apply the Guarantee to G:
G is guaranteed to receive at least ₹75,000. G’s calculated share is ₹60,000, which is less than the guaranteed amount. The shortfall is ₹75,000 - ₹60,000 = ₹15,000.
Adjust for G’s Guarantee:
The deficiency is borne equally by E and F.
- Deficiency to be borne by E = ₹15,000 / 2 = ₹7,500
- Deficiency to be borne by F = ₹15,000 / 2 = ₹7,500
Calculate F’s Final Share:
Initially, F’s share was ₹90,000.
After bearing the deficiency, F’s share = ₹90,000 - ₹7,500 = ₹82,500

Therefore, F’s share of the profit is ₹82,500.

The answer to the multiple-choice question is (B) ₹82,500.