PRC-1 · Chapter 10 · Question 64 of 100
In a partnership, Partner A and B share residual profits 3:2. If the net profit is Rs. 100,000, and Partner A is entitled to a salary of Rs. 20,000, what is Partner A's total share of the profit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 68,000
Explanation
Residual profit = 100,000 - 20,000 (salary) = 80,000. Partner A's residual share = 80,000 x 3/5 = 48,000. Total share = 48,000 + 20,000 (salary) = Rs. 68,000.
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