Question
P and Q started a business by investing Rs. 10,000 and
Rs. 15,000 respectively. P also worked as the active manager and for that he is entitled to receive a commission which is equal to 20% of profit. If the difference between the amount received by P and Q at the end of the year is Rs. 720, then find the profit (before commission was given to P) earned by them.Solution
Let the profit earned before commission was given to P be Rs. ‘100x’ Commission of P = 100x × 0.20x = Rs. 20x Ratio of profit shares of P to Q = 10000:15000 = 2:3 Profit earned by P = (100x – 20x) × (2/5) = Rs. 32x Profit earned by Q = (100x – 20x) × (3/5) = Rs. 48x According to the question 20x + 32x – 48x = 720 Or, 4x = 720 So, x = 180 So, required profit = 180 × 100 = Rs. 18,000
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