Question

A started a business with Rs. 52,000 and after 4 months B joined him with Rs.39,000. At the end of the year, out of the total profits B received total Rs. 20,000 including $25\%$of the profits as commission for managing the business. What amount did A receive?

• A. Rs. 70,000
• B. Rs. 60,000
• C. Rs. 20,000
• D. Rs. 40,000
• E. Rs. 20,00,00

Answer 1

The correct option is C Rs. 20,000

Profit's share of A and B $=\frac{(52,000\times 12)}{(39,000\times 8)}=2:1$

Let the profit be Rs. x, then B receives $25\%$ as commission for managing business, the remaining $75\%$ of the total profit x is shared between A and B in the ratio 2:1. Hence B will get ${\frac{1}{3}}^{rd}$ part of this in addition to his commission. Hence his total earning

$=0.25x+\frac{1}{3}\times 0.75x$
$=0.5x=20,000$
$x=40,000$
So,the remaining profit goes to A,hence the profit of A is Rs.20,000.