What is the amount of profit to be credited to V's Capital account?

The correct option is:

Rs.3,12,000

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Step-by-Step Calculation:

Step 1: Calculate Adjusted Net Profit for Distribution

• Net Profit earned by the firm: Rs. 8,60,000
• A's Guaranteed Fee Deficiency: A guaranteed to earn Rs. 6,00,000 but only earned Rs. 3,20,000. The shortage must be recovered from A's Capital Account.

$\text{Deficiency to be recovered from A} = 6,00,000 - 3,20,000 = \text{Rs. 2,80,000}$

• Total Profit available for appropriation:

$\text{Total Profit} = 8,60,000 + 2,80,000 = \text{Rs. 11,40,000}$

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Step 2: Deduct Interest on Capital (IOC)

• A's IOC: $5\% \text{ of } 3,00,000 = \text{Rs. 15,000}$
• V's IOC: $5\% \text{ of } 3,00,000 = \text{Rs. 15,000}$
• T's IOC: $5\% \text{ of } 2,00,000 = \text{Rs. 10,000}$
• Total IOC: $\text{Rs. 40,000}$

$\text{Divisible Profit} = \text{Total Profit (11,40,000)} - \text{Total IOC (40,000)} = \mathbf{\text{Rs. 11,00,000}}$

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Step 3: Initial Profit Share Distribution (Ratio 5:3:2)

• A's share: $\frac{5}{10} \times 11,00,000 = \text{Rs. 5,50,000}$
• V's share: $\frac{3}{10} \times 11,00,000 = \text{Rs. 3,30,000}$
• T's share: $\frac{2}{10} \times 11,00,000 = \text{Rs. 2,20,000}$

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Step 4: Adjusting T's Minimum Profit Guarantee

• T was guaranteed a minimum profit of Rs. 2,50,000.
• T's Deficiency: $2,50,000 - 2,20,000 = \mathbf{\text{Rs. 30,000}}$
• This deficiency of Rs. 30,000 is to be borne by A and V in the ratio of 2:3.
• V's share of T's deficiency: $\frac{3}{5} \times 30,000 = \mathbf{\text{Rs. 18,000}}$

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Step 5: Final Share of Profit for V

$\text{V's Final Profit Share} = \text{Initial Share (3,30,000)} - \text{Deficiency Borne (18,000)} = \mathbf{\text{Rs. 3,12,000}}$