Question
‘K’ and ‘L’ started a business by investing Rs.
42,000 and Rs. 35,000, respectively. ‘L’ 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, ‘K’ received a profit of Rs. 21,000, then find the total amount received by ‘L’ at the end of the year.Solution
ATQ, Ratio of profit shares of ‘K’ and ‘L’ = (42000 × 12):(35000 × 12) = 6:5 Total profit that was divided between ‘K’ and ‘L’ = 21000 × (11/6) = Rs. 38,500 Total profit earned from the business = 38500 ÷ 0.8 = Rs. 48,125 Amount received by ‘L’ at the end of the year = 48,125 – 21,000 = Rs. 27,125
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