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Ak bk and ck are partners capitals are fixed and profit sharing ratio are 2:2:1 .ck was individually guaranteed by ak and bk that his share of profits will be 50000. Deficiency (if Any) on that account will be met by ak and bk in the ratio 3:2 . The net profits of the firm the year 31 March was 200000. Show the distribution of profits among partners.?
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Ak bk and ck are partners capitals are fixed and profit sharing ratio ...
Distribution of Profits Among Partners



  • Partner capitals are fixed and profit sharing ratio is 2:2:1.

  • Net profits of the firm for the year ending 31 March was 200000.

  • CK was guaranteed by AK and BK that his share of profits will be 50000.

  • Deficiency, if any, on CK's guarantee will be met by AK and BK in the ratio 3:2.



Calculation of Profit Share



  • AK's profit share = 2/5 * 200000 = 80000

  • BK's profit share = 2/5 * 200000 = 80000

  • CK's profit share = 1/5 * 200000 = 40000



Calculation of CK's Guaranteed Profit Share



  • CK's guaranteed profit share = 50000

  • CK's actual profit share = 40000

  • Deficiency in CK's guaranteed profit share = 50000 - 40000 = 10000



Calculation of AK and BK's Share of Deficiency



  • AK's share of deficiency = 3/5 * 10000 = 6000

  • BK's share of deficiency = 2/5 * 10000 = 4000



Final Distribution of Profits Among Partners



  • AK's profit share = 80000 + 6000 = 86000

  • BK's profit share = 80000 + 4000 = 84000

  • CK's profit share = 40000



Therefore, AK will receive a profit share of 86000, BK will receive a profit share of 84000, and CK will receive a profit share of 40000. The deficiency in CK's guaranteed profit share will be met by AK and BK in the ratio of 3:2.
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Ak bk and ck are partners capitals are fixed and profit sharing ratio are 2:2:1 .ck was individually guaranteed by ak and bk that his share of profits will be 50000. Deficiency (if Any) on that account will be met by ak and bk in the ratio 3:2 . The net profits of the firm the year 31 March was 200000. Show the distribution of profits among partners.?
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