Question
βCβ and βDβ started a business by investing Rs.
30,000 and Rs. 25,000, respectively. βDβ 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, βCβ received a profit of Rs. 15,000, then find the total amount received by βDβ at the end of the year.Solution
ATQ, Ratio of profit shares of βCβ and βDβ = (30000 Γ 12):(25000 Γ 12) = 6:5 Total profit that was divided between βCβ and βDβ = 15000 Γ (11/6) = Rs. 27,500 Total profit earned from the business = 27500 Γ· 0.8 = Rs. 34,375 Amount received by βDβ at the end of the year = 34,375 β 15,000 = Rs. 19,375
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