Question
Three partners, A, B, and C, invest Rs 12,000, Rs
15,000, and Rs 18,000 respectively in a business. After one year, the total profit generated is Rs 22,500. Since partner A is the managing partner and receives 20% of the total profit, how much profit will each partner receive individually?Solution
Total profit = 22,500 Amount A receives as a managing partner = 20% of 22,500 = 4,500 Remaining profit = 22,500 - 4,500 = 18,000 The remaining profit is distributed based on the capital ratio of A, B, and C: Ratio of their profit share = 12000: 15000: 18000 = 4: 5: 6 A's share of the remaining profit = 4/15 × 18000 = 4800 B's share of the remaining profit = 5/15 × 18000 = 6000 C's share of the remaining profit = 6/15 × 18000 = 7,200 Total received by A = 4,500 + 4,800 = 9,300 Total received by B = 6,000 Total received by C = 7,200
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