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Vikas and Vivek were partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2019 they admitted Vandana as a new partner for 1/8th share in the profits with a guaranteed profit of Rs 1,50,000. The new profit sharing ratio between Vivek and Vikas will remain the same but they decided to bear any deficiency on account of guarantee to Vandana in the ratio 2 : 3. The profit of the firm for the year ended 31st March, 2020 was 9,00,000. Profit transferred to Vivek's Capital A/c will be:
rs4,50,000
rs3,00,000
rs 1,50,000
rs 1,20,000
- Vandana is admitted for a \( \frac{1}{8} \) share in profits with a guaranteed profit of Rs 1,50,000.
- The remaining profit, after Vandana's guaranteed share, is to be shared between Vivek and Vikas in their original ratio of 2:3.
- The total profit for the year is Rs 9,00,000.
Vandana's share =1/8 of Rs 9,00,000 = Rs 1,12,500.
- As her profit is less than her guaranteed Rs 1,50,000, Vivek and Vikas bear the deficiency of Rs 37,500 in the ratio 2:3.
- Vivek's share of this deficiency is \( \frac{2}{5} \times 37,500 = Rs 15,000 \).
- Remaining profit after Vandana's share is Rs 9,00,000 - Rs 1,12,500 = Rs 7,87,500 to be distributed between Vikas and Vivek.
- Vivek’s share from remaining profit is \( \frac{2}{5} \times 7,87,500 = Rs 3,15,000 \).
- Deducting his share of the deficiency: Rs 3,15,000 - Rs 15,000 = Rs 3,00,000.
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