Question
‘C’ and ‘D’ started a business by investing Rs.
30,000 and Rs. 25,000, respectively. ‘D’ manages the business and for that he is entitled to receive a commission of 20% out of the total profit, while the rest of the profit is divided among them in the ratio of their investments. If at the end of the year, ‘C’ received a profit of Rs. 15,000, then find the total amount received by ‘D’ at the end of the year.Solution
ATQ, Ratio of profit shares of ‘C’ and ‘D’ = (30000 × 12):(25000 × 12) = 6:5 Total profit that was divided between ‘C’ and ‘D’ = 15000 × (11/6) = Rs. 27,500 Total profit earned from the business = 27500 ÷ 0.8 = Rs. 34,375 Amount received by ‘D’ at the end of the year = 34,375 – 15,000 = Rs. 19,375
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