Question

Nitesh & Jitesh invested Rs 15000 and Rs 18000 respectively in a business. If the total profit at the end of the year is Rs 8800 and Nitesh being an active partner gets an additional 12.5% of the profit, find the total profit of Nitesh in Rs

Answer 1

Profit sharing ratio = 15000 : 18000 = 5 : 6 Total profit = 8800
Nitesh gets 12.5% of the profit $=\frac{12.5}{100}\times 8800=Rs.1100$
Net profit = $8800-1100=Rs.7700$
Nitesh share in profit $=\frac{5}{5+6}\times 7700=Rs.3500$
Total profit of Nitesh $=3500+1100=Rs.4600$