Question
Paras and Punit started a business by investing Rs.
18,000 and Rs. 24,000 respectively. Paras also worked as the active manager and for that he is entitled to receive a commission which is equal to 30% of profit. If the difference between the amount received by Paras and Punit at the end of the year is Rs. 2000, then find the profit (before commission was given to Paras) earned by them.Solution
Let the profit earned before commission was given to Paras be Rs. ‘100x’ Commission of Paras = 100x × 0.3x = Rs. 30x Ratio of profit shares of Paras to Punit = 18000:24000 = 3:4 Profit earned by Paras = (100x – 30x) × (3/7) = Rs. 30x Profit earned by Punit = (100x – 30x) × (4/7) = Rs. 40x According to the question 30x + 30x – 40x = 2000 Or, 20x = 2000 So, x = 100 So, required profit = 100 × 100 = Rs. 10,000
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