Question

A and B jointly invest Rs 2100 and Rs 3100 in a firm. A is an active partner, hence he receives 25% of the profit separately. If their business yields Rs 1040 as profit, what will be the profit share for each of them ?

• A. Rs 415, Rs 625
• B. Rs 575, Rs 465
• C. Rs 515, Rs 525
• D. Rs 560, Rs 480
• E. None of these

Answer 1

The correct option is B Rs 575, Rs 465

Total profit in a business = Rs 1040
Separate profit for A = 25% of Rs 1040
$\frac{1040\times 25}{100}=Rs260$
Remaining profit = Rs (1040 - 260) = Rs 780
The remaining profit will be divided in proportion to their capitals
$\therefore$ Ratio between capitals of A and B = 2100 : 3100 = 21:31
Sum of Editor : Proportional ? Capital ? = 21 + 31 = 52
$\therefore A^{\prime }sprofit=\frac{21}{52}\times 780=Rs315$
B's profit $=\frac{31}{52}\times 780=Rs465$
Total profit of A = Rs(315 + 260) = Rs 575
Therefore, A and B's profit shares will be Rs 575 and Rs 465