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.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
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