A, B and C are partners. A’s capital is Rs. 3,00,000 and B’s capital is Rs. 1,00,000. C has not invested any amount as capital but alone manages the whole business. C wants Rs. 30,000 per annum as salary. The firm earned a profit of Rs. 1,50,000. How much will be each partner’s share of profit?

The correct answer is: A – Rs. 60,000, B – Rs. 60,000, C – Nil.

The ratio of the capitals of A and B is 3:1. So, the ratio of their shares in the profit is also 3:1. The total profit is Rs. 1,50,000. So, A’s share is Rs. 60,000 and B’s share is Rs. 30,000.

C has not invested any amount as capital but alone manages the whole business. C wants Rs. 30,000 per annum as salary. So, C’s share in the profit is Rs. 30,000.

Therefore, A’s share is Rs. 60,000, B’s share is Rs. 30,000, and C’s share is Rs. 30,000.

The other options are incorrect because they do not take into account the fact that C wants Rs. 30,000 per annum as salary.