Kavita and Lalit are partners sharing profits in the ratio of 2:1. They decide to admit Mohan with share in profits with a guaranteed amount of Rs. 25,000. Both Kavita and Lalita undertake to meet the liability arising out of Guaranteed amount to Mohan in their respective profit sharing ratio. The profit sharing ratio between Kavita and Lalit does not change. The firm earned profits of Rs. 76,000 for the year 2006–07.

Show the distribution of profit amongst the partners.

Answer rating: 100% (QA)

To distribute the profit amongst the partners 1 Calculate Total Guaranteed Amount Mohans gua... View the full answer