Question
A and B started a business by investing Rs. 12,000 and
Rs. 18,000 respectively. A also worked as the active manager and for that he is entitled to receive a commission which is equal to 25% of profit. If the difference between the amount received by A and B at the end of the year is Rs. 1200, then find the profit (before commission was given to A) earned by them.Solution
Let the profit earned before commission was given to A be Rs. 100x Commission of A = 100x x 0.25x = Rs. 25x Ratio of profit shares of A to B = 12000:18000 = 2:3 Profit earned by A = (100x - 25x) x (2/5) = Rs. 30x Profit earned by B = (100x - 25x) x (3/5) = Rs. 45x According to the question 25x + 30x - 45x = 1200 Or, 10x = 1200 So, x = 120 So, required profit = 120 x 100 = Rs. 12,000
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