Question

    'P' and 'Q' started a business by investing Rs. 6,000

    and Rs. 9,000, respectively. 'P' also works as manager in the business for which he's entitled to receive a commission of 20% out of total profit. If at the end of the year, the business earned a total profit of Rs. 10,000, then find the total amount received by 'P'.
    A Rs. 4,800 Correct Answer Incorrect Answer
    B Rs. 5,200 Correct Answer Incorrect Answer
    C Rs. 6,000 Correct Answer Incorrect Answer
    D Rs. 5,500 Correct Answer Incorrect Answer
    E Rs. 4,500 Correct Answer Incorrect Answer

    Solution

    Ratio of profit shares of 'P' and 'Q' at the end of the year = {6000 X 12}:{9000 X 12} = 2:3 Total amount received by 'P' = commission earned by 'P' + Profit share of 'P' So, commission earned by 'P' = 10000 X 0.2 = Rs. 2,000 So, net profit to be distributed between 'P' and 'Q' = 10000 - 2000 = Rs. 8,000 So, profit share of 'P' = 8000 X (2/5) = Rs. 3,200 So, total amount received by 'P' = 3200 + 2000 = Rs. 5,200

    Practice Next
    More Partnership Questions

    Relevant for Exams:

    ask-question