Multiple choice

Directions: Study the following information carefully and answer the question that follows. In a business, three partners P, Q and R respectively invest Rs. 18,000, Rs. 16,000 and Rs. 10,000 as capitals. P and Q respectively receive 14% and 10% of the annual profits for services, and the remaining profits are divided among the three in proportion to their capitals. At the end of the year, P receives altogether Rs. 848 more than Q. What is the difference between the shares in the profit for P and Q excluding their share for services?

  1. Rs. 392.69

  2. Rs. 204.85

  3. Rs. 450.95

  4. Rs. 560.98

  5. None of these
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A Correct answer
Explanation

The capital ratio of P, Q, and R is 9 : 8 : 5. After accounting for the service shares of P (14%) and Q (10%), the remaining 76% of the profit is shared in this ratio. Setting up the equation for the difference in their total shares (Rs. 848) allows us to find the total profit, from which the difference in their capital-based shares is calculated as Rs. 392.69.

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