Question
βAβ and βBβ together started a business by
investing Rs. 8,000 and Rs. 12,000, respectively. βAβ also works as a manager and hence is entitled to receive 40% of the total profit as salary. The rest of the profit will be divided between βAβ and βBβ in the ratio of their investments. If the salary received by βAβ from the business at the end of the year is Rs. 6,000, then find the profit share of βBβ at the end of the year.Solution
Ratio of profit share of βAβ and βBβ = 8000:12000 = 2:3 Total profit earned by the business = 6000 Γ· 0.40 = Rs. 15,000 Profit share of βBβ = (15000 β 6000) Γ (3/5) = Rs. 5,400
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