CBSE 2023 · Region 1 · Set 2 · Q1

Kavita, Savita and Madhu were partners in a firm with capitals of ₹ $\displaystyle 6,00,000$, ₹ $\displaystyle 4,00,000$ and ₹ $\displaystyle 2,00,000$ respectively. After providing interest on capital @ $\displaystyle 10$% p.a., the profits are divisible as follows : Kavita $\displaystyle 1$/$\displaystyle 3$, Savita $\displaystyle 1$/$\displaystyle 2$ and Madhu $\displaystyle 1$/6. Kavita personally guaranteed that Savita's share of profit after charging interest on capital would not be less than ₹ $\displaystyle 1,00,000$ in any year. The profit for the year ending 31st March, $\displaystyle 2022$ amounted to ₹ $\displaystyle 3,00,000$ before providing interest on capital. The total profits of the firm after adjustment of guaranteed amount will be distributed between the partners as :