A, Y and Z are partners in the ratio of 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than Rs. 80,000 and any deficiency will be borne by A and Y in the ratio of 3 : 2. If the firm’s profit is Rs. 5,60,000, how much deficiencywill be borne by Y?

The correct answer is D.

A, Y and Z are partners in the ratio of 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than Rs. 80,000. This means that Z’s share of the profit is Rs. 80,000.

The remaining profit is Rs. 5,60,000 – Rs. 80,000 = Rs. 4,80,000.

A and Y share this remaining profit in the ratio of 3 : 2. This means that A’s share is Rs. 4,80,000 x 3/5 = Rs. 2,88,000 and Y’s share is Rs. 4,80,000 x 2/5 = Rs. 1,92,000.

Y’s share is already more than Rs. 9,600, so there is no deficiency for Y to bear.

Here is a breakdown of the profit sharing:

• Z: Rs. 80,000
• A: Rs. 2,88,000
• Y: Rs. 1,92,000

Total: Rs. 5,60,000