New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    ‘A’ and ‘B’ together started a business by

    investing Rs. 8,000 and Rs. 12,000, respectively. ‘A’ 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 ‘A’ and ‘B’ in the ratio of their investments. If the salary received by ‘A’ from the business at the end of the year is Rs. 6,000, then find the profit share of ‘B’ at the end of the year.
    A Rs. 5,400 Correct Answer Incorrect Answer
    B Rs. 5,500 Correct Answer Incorrect Answer
    C Rs. 5,420 Correct Answer Incorrect Answer
    D Rs. 5,430 Correct Answer Incorrect Answer
    E Rs. 5,490 Correct Answer Incorrect Answer

    Solution

    Ratio of profit share of ‘A’ and ‘B’ = 8000:12000 = 2:3 Total profit earned by the business = 6000 ÷ 0.40 = Rs. 15,000 Profit share of ‘B’ = (15000 – 6000) × (3/5) = Rs. 5,400

    Practice Next

    Relevant for Exams: