CUET CUET Accountancy 2024 - Kavita and Lalita are partners, sharing profits in the ratio of 2:1. They decide to admit Mohan for 1/4th share in profits with a guaranteed amount of ₹ 25,000. Both Kavita and Lalita undertake to meet the liability arising due to the guaranteed 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: | PYQs + Solutions

CUET Accountancy 2024

Accountancy

Admission of a Partner

Medium

Kavita and Lalita are partners, sharing profits in the ratio of 2:1. They decide to admit Mohan for 1/4th share in profits with a guaranteed amount of ₹ 25,000. Both Kavita and Lalita undertake to meet the liability arising due to the guaranteed 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:

₹ 4,000

₹ 2,000

₹ 6,000

₹ 4,500

Correct Option: 1

Kavita and Lalita share profits in a ratio of 2:1. Total profit = ₹ 76,000.

Mohan is admitted for 1/4th share, which means he gets ₹ 76,000 × 1/4 = ₹ 19,000.

Mohan's guaranteed amount = ₹ 25,000.

Deficiency = Guaranteed amount - Share of profit = ₹ 25,000 - ₹ 19,000 = ₹ 6,000.

Kavita and Lalita share this deficiency in their profit ratio of 2:1.

Kavita's share of deficiency =

6,000 \times \frac{2}{3} = ₹ 4,000

So, the deficiency borne by Kavita is ₹ 4,000.

Correct answer: Option 1.