Guarantee of Profit to a Partner.

What is the meaning of the part 2 ( Babita gives guarantee....) of this question?
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asked Mar 28, 2016 in Partnership-Admission by Feba Rajeev (71 points) 1,874 views

1 Answer

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Babita gives guarantee to the firm that she will earn atleast Rs.25000 per year.  If she is not able to earn this much for the firm, then she will give the shortfall to the firm.  In this question she earns only Rs.16000, Rs.9000 less than the guarantee she had given.  So she pays Rs.9000 to the firm.  Now firm's profit becomes Rs.84000 (Rs.75000+Rs.9000).  When this Rs.84000 is divided among all partners in their ratio 3 : 2 : 1, Sona gets Rs.14000  which is Rs.1000 less than the minimum amount of profit guaranteed to her.  This shortfall in her profits will be contributed by Amit and Babita in the ratio between them i.e. 3 : 2.

Actual amount received by Babita will be Rs.27600 - 9000) = Rs.18600

answered Mar 28, 2016 by jbsclasses (3,971 points)