New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    'Amit' and 'Bikash' embarked on a business venture with

    initial investments of Rs. 20,000 and Rs. 25,000, respectively. After 3 months, 'Chims' entered the partnership by investing Rs. 15,000. In the same period, 'Amit' decided to increase his investment by 20%, while 'Bikash' opted to withdraw 20% of his initial investment. 'Amit' assumed the role of managing partner and was entitled to 40% of the total annual profit generated by the business. The remaining profit was distributed among the partners based on the ratio of their effective investments. Calculate the exact amount received by 'Amit' at the end of the year, given that the total profit amounted to Rs. 37,000.
    A Rs.24,500 Correct Answer Incorrect Answer
    B Rs.24,050 Correct Answer Incorrect Answer
    C Rs.24,000 Correct Answer Incorrect Answer
    D Rs.25,000 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Ratio of profit share of 'Amit', 'Bikash' and 'Chims', at the end of the year =  [20,000 × 3 + 24,000 × 9]:[25,000 × 3 + 20,000 × 9]:[15,000 × 9] = 92:85:45 'Amit' gets 40% of the share for managing the business = Rs. 40% of 37,000 = Rs. 14,800 Remaining profit = Rs.37,000 - 14800 = Rs.22,200 The remaining profit is to be distributed among 'Amit', 'Bikash' and 'Chims' based on ratio of their investment, which is 92:85:45 Profit share of 'A' = Rs.(92/222) × 22,200 = Rs.9,200 Total amount received 'Amit' = Rs. 14,800 + 9,200 = Rs.24,000

    Practice Next

    Relevant for Exams: