Question
P and Q started a business by investing Rs. 14,000 and
Rs. 21,000 respectively. p 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 P and Q at the end of the year is Rs. 650, 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 × 0.25x = Rs. 25x Ratio of profit shares of P to Q = 14000:21000 = 2:3 Profit earned by P = (100x – 25x) × (2/5) = Rs. 30x Profit earned by Q = (100x – 25x) × (3/5) = Rs. 45x According to the question 25x + 30x – 45x = 650 Or, 10x = 650 So, x = 65 So, required profit = 65 × 100 = Rs. 6,500
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