Question
T and H commenced a construction business with
investments of Rs. 750 and Rs. 900, respectively. After three months, V joined the business, contributing Rs. 1,000. Since T plays an active role as a working partner, he receives 20% of the profit for managing the business. The remaining profit is distributed among them based on their investment ratios. Calculate the profit share of T from the total profit of Rs. 3,750 after one year.Solution
ATQ, Ratio of their profits = 750 × 12: 900 × 12: 1000 × 9 = 5: 6: 5 Profit share of T for being a working partner = 0.20 × 3750 = Rs.750 Profit share of T for his investment = 0.80 × 3750 × (5/16) = Rs.937.50 So, the total profit share of T = 750 + 937.50 = Rs.1,687.5
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