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      Question

      'Anuj' and 'Pawan' started a business by investing Rs.

      40,000 and Rs. 60,000, respectively. Six months later, 'Charu' also joined the business by investing Rs. 40,000. He also worked as the Sales Manager for which he was entitled to a commission of 5% from the gross profit. If at the end of 18 months, the total profit earned by the business was Rs. 2,50,000, then which of the following statement/s is/are true? I. The difference between profit share of 'Pawan' and amount collected by 'Charu' is Rs. 50,000. II. Commission earned by 'Charu' is Rs. 15,000. III. Profit shares of 'Anyj' and 'Charu' are in ratio 2:3, respectively.
      A Only I and II Correct Answer Incorrect Answer
      B Only I Correct Answer Incorrect Answer
      C Only II and III Correct Answer Incorrect Answer
      D Only III Correct Answer Incorrect Answer
      E All I, II and III Correct Answer Incorrect Answer

      Solution

      ATQ, Ratio of profit shares of 'Anuj', 'Pawan' and 'Charu' at the end of 18 months = (40000 X 18) :(60000 X 18) :(40000 X 12) = 6:9:4 So, commission earned by 'Charu' = 250000 X 0.05 = Rs. 12,500 So, statement II is false. So, gross profit remaining to be distributed among 'Anuj', 'Pawan' and 'Charu' = 250000 - 12500 = Rs. 2,37,500 So, profit share of 'Anuj' = 2,37,500 X (6/19) = Rs. 75,000 And profit share of 'Pawan' = 2,37,500 X (9/19) = Rs. 1,12,500 And profit share of 'Charu' = 2,37,500 X (4/19) = Rs. 50,000 So, difference between profit share of 'Pawan' and amount collected by 'Charu' = 1,12,500 - (50000 + 12,500) = Rs. 50,000 So, statement I is true. And ratio of profit shares of 'Anuj' and 'Charu' = 6:4 = 3:2 So, statement III is false.

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