A partnership has three partners: A, B, and C. They agreed to share profits and losses in the ratio of 3:2:1. If the partnership's profit for the year is $90,000, how much will Partner B's share of the profit be?Question 16Answera.$30,000b.$36,000c.$40,000d.$45,000
Question
A partnership has three partners: A, B, and C. They agreed to share profits and losses in the ratio of 3:2:1. If the partnership's profit for the year is 30,000b.40,000d.$45,000
Solution
The profit sharing ratio for partners A, B, and C is 3:2:1. This means that for every 6 parts of profit, partner A gets 3 parts, partner B gets 2 parts, and partner C gets 1 part.
The total profit for the year is $90,000.
First, we need to find out how much each part in the ratio is worth. To do this, we divide the total profit by the total number of parts in the ratio.
The total number of parts in the ratio is 3 (for A) + 2 (for B) + 1 (for C) = 6 parts.
So, each part is worth 15,000.
Partner B's share of the profit is 2 parts. Therefore, Partner B's share is 2 * 30,000.
So, the answer is a. $30,000.
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