Question

$M$ and $N$ are partners in a firm out of which $M$ is sleeping partner and $N$ is working partner. $M$ invests Rs. $1,80,000$ and $N$ invests Rs. $90,000$. $N$ receives $14.5\%$ of profit for managing the business and the rest is shared between both in ratio of their investments. $M^{\prime }$s share in the profit of Rs. $24000$ is ?

Answer 1

Profit received by $N$ as working partner $=14.5\%$ of Rs. $24000$:

$\Rightarrow \frac{14.5}{100}\times 24000=3480$ Rs.

Balance in profit $=24000-3480=20520$ Rs.

Ratio of investment of M and N:

$\Rightarrow 180000:90000$

$\Rightarrow 2:1$

Then $M^{\prime }$s share in profit:

$\Rightarrow \frac{2}{3}\times 20520$

$\Rightarrow 13680$ Rs.

Thus, $M^{\prime }$s share in profit $=13680$ Rs.