Distribution of Profit Among Partne… — Class 12 Accountancy Notes (GSEB)

Pattern 1 — Direct Ratio Division

⭐ Divisible profit

Profit remaining after interest on capital, salary, commission, reserves etc. (i.e. after the appropriation account's debit items and adding its credit items) — this is what partners share in their profit-loss sharing ratio (PSR).

Each partner's share

Share = Total profit × Partner's ratio term / Sum of ratio terms

e.g. 68,000 × 15/34 for a 15:10:9 ratio

Check

Sum of all shares = Total profit

Every distribution must add back exactly

Solved Example

Problem

Teaching walkthrough: Rajkumar, Kaushik and Sharma share 15:10:9; total profit ₹ 68,000.

Solution

Rajkumar ₹ 30,000; Kaushik ₹ 20,000; Sharma ₹ 18,000 (check: 30,000 + 20,000 + 18,000 = 68,000 ✓)

⭐ Capital ratio is not the profit ratio

If a question gives only capital ratio(e.g. “capital 4:2:3”) and no PSR → distribute equally, not in capital ratio (see Topic: Commission C1, and the guarantee sum below).

Pattern 2 — Deriving the Ratio from Relationships

The five-move method

Assume ₹ 1 for the base partner → translate every relationship → write all three as fractions with a common denominator → multiply by the LCM to get a whole-number ratio → divide the profit. The worked sum below unlocks each move one at a time.

Worked 1 — Riya, Dilip, Kirtan; profit ₹ 1,92,000 (textbook Illustration 5)

① Choose base = 1

1/5

Kirtan = 1/5 of Dilip → assume Dilip = 1.

Pattern 3 — Capital + Interest on Capital + Profit (Back-Solve)

⭐ Core idea

The profit-sharing ratio is given separately (usually equal); interest on capital comes from the capital ratio. One partner's total receipt including interestis the key that unlocks the (equal) profit share, which then gives the other partners' totals.

Steps to memorise

① split capital by capital ratio → ② compute IoC on each → ③ subtract IoC from the given partner's total → ④ that is everyone's profit share (equal PSR) → ⑤ add IoC for the asked partners.

Worked 1 — Jennet, Akshra, Sapna (textbook Illustration 11): equal PSR; capital ₹ 3,00,000 in 2:3:5; 6% p.a.; Akshra received ₹ 45,400 including interest
Particular	Jennet (₹)	Akshra (₹)	Sapna (₹)
Capital (2:3:5 of 3,00,000)	60,000	90,000	1,50,000
Interest on capital @ 6% p.a.	3,600	5,400	9,000
Divisible profit (1:1:1)	40,000	40,000	40,000
Profit including interest on capital	43,600	45,400	49,000

Solved Example

Problem

Akshra received ₹ 45,400 including interest — find the others.

Solution

Jennet ₹ 43,600; Sapna ₹ 49,000

Pattern 4 — Minimum Assurance (Guarantee) of Profit

⭐ The guarantee rule

Distribute profit normally in PSR first. If a guaranteed partner gets less than the assured minimum, the deficit is borne by the guaranteeing partners — in their profit-sharing ratio among themselves (unless the question says otherwise). If the guaranteed partner already gets ≥ minimum, no adjustment.

Worked 1 — Yusuf, Harun, Kodawala (3:2:1 · ₹ 1,80,000)

1/1

Textbook Illustration 9 — Kodawala is assured a minimum of ₹ 36,000.

Particular	Yusuf (₹)	Harun (₹)	Kodawala (₹)	Total (₹)
Normal distribution (3:2:1)	90,000	60,000	30,000	1,80,000
Adjustment for guarantee	−3,600	−2,400	+6,000	—
Actual distribution	86,400	57,600	36,000	1,80,000

Deficit = 36,000 − 30,000 = ₹ 6,000 borne by Yusuf & Harun in 3:2 → 6,000 × 3/5 = ₹ 3,600; 6,000 × 2/5 = ₹ 2,400.

Never adjust in the full PSR

Only the guarantors bear the deficit, in their ratio — never the full PSR.

Interactive Problem Solver

Enter profit, ratio (and an assured minimum for guarantee mode) — the solver walks the exam-order procedure: sum the ratio → normal distribution → guarantee test → final table with the Total = Profit check.

Profit Distribution Solver — Share = Profit × term / Σ

Work through steps 1–4 in order — the same four steps you will write in the exam.

Always end with the check

After your table, write the addition line: all shares + adjustments = profit ✓. In the default board sum that reads 30,000 + 20,000 + 18,000 = 68,000 ✓ — the solver's green “Total = Profit ✓” badge is exactly that line. If the shares do not add back, the ratio sum or one of the multiplications is wrong, and the examiner looks for the tie-back first.

Worked Board Sums

Type 3 — Distribution of Profit: Board Sums

10 problems

Pattern 1 — Direct division

PSR of Rajkumar, Kaushik and Sharma is 15:10:9. Total profit ₹ 68,000. Determine each partner's share.Rajkumar ₹ 30,000; Kaushik ₹ 20,000; Sharma ₹ 18,000

Taught in Section 1; also the solver default.

Pattern 2 — Ratio from relationships

Riya, Dilip, Kirtan — Kirtan = 1/5 of Dilip, Riya = 2 × Kirtan. Profit ₹ 1,92,000.Ratio 2:5:1 → Riya ₹ 48,000; Dilip ₹ 1,20,000; Kirtan ₹ 24,000

Mehta receives 4× Pandya; Bajpai receives half of Mehta. Profit ₹ 87,500.Ratio 4:1:2 → Mehta ₹ 50,000; Pandya ₹ 12,500; Bajpai ₹ 25,000

Mili = half of Mita; Mira = 3 × Mili. Profit ₹ 30,000.Ratio (Mita:Mili:Mira) 2:1:3 → Mili ₹ 5,000; Mita ₹ 10,000; Mira ₹ 15,000

Pattern 3 — Capital + interest + profit

Jennet, Akshra, Sapna — equal PSR, capital 2:3:5 of ₹ 3,00,000, 6% p.a., Akshra received ₹ 45,400 incl. interest.Jennet ₹ 43,600; Sapna ₹ 49,000

A, B, C — equal PSR, capital 1:3:2 of ₹ 4,50,000, 9% p.a., C received ₹ 73,500 incl. interest. (J19)A ₹ 66,750; B ₹ 80,250

Juhi, Julie, Jimmy — equal PSR, capital 5:3:2 of ₹ 4,00,000, 6% p.a., Jimmy received ₹ 1,24,800 incl. interest.Julie ₹ 1,27,200 (Juhi ₹ 1,32,000)

Pattern 4 — Minimum assurance

Mukesh, Dhaval, Vinod — capital 4:2:3; Dhaval & Vinod assure Mukesh min ₹ 35,000; profit ₹ 90,000. (M21)Mukesh ₹ 35,000; Dhaval ₹ 27,500; Vinod ₹ 27,500

PSR absent → equal first; deficit ₹ 5,000 borne equally by the two guarantors.

Yusuf, Harun, Kodawala — 3:2:1; assurance min ₹ 36,000 to Kodawala; profit ₹ 1,80,000.₹ 86,400 / ₹ 57,600 / ₹ 36,000

Sushma, Keyur, Dhaval — 5:3:2; assurance min ₹ 30,000 to Dhaval; profit ₹ 1,20,000.Sushma ₹ 56,250; Keyur ₹ 33,750; Dhaval ₹ 30,000

Key Takeaways

Share = Profit × partner's term ÷ sum of terms; all shares must add back to the profit.
Relationships → assume base = 1 → translate → common denominator → whole ratio.
Capital ratio is not PSR — absent PSR means equal distribution.
Pattern 3: subtract the given partner's interest from their total to reveal the (equal) profit share everyone received.
Guarantee: normal distribution first; only the deficit moves, only among guarantors, only in their ratio.
⭐ No PSR in the sum → distribute equally, never in capital ratio.

Distribution of Profit Among Partners

Notes