Multiple choice

Rikita, Priyanka and Dviti are in partnership in which Dviti is a working partner and the other two are sleeping partners. The working partner is given a monthly salary of Rs. 5000. Dviti receives a total of 2 lakh in one year. Rikita invests 30% more than Dviti, and Priyanka invests 25% more than Dviti. What is the total profit earned in a year?

  1. Rs. 4,97,000

  2. Rs. 5,57,000

  3. Rs. 4,20,000

  4. Rs. 6,00,000

  5. Rs. 7,10,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Dviti's annual income is 2,00,000. Salary is 5,000 * 12 = 60,000. Profit share = 1,40,000. Since Dviti is the working partner, the profit is distributed based on investment. Rikita invests 1.3D, Priyanka 1.25D, Dviti 1D. Total investment ratio is 1.3:1.25:1. Total profit = 1,40,000 * (1.3 + 1.25 + 1) / 1 = 1,40,000 * 3.55 = 4,97,000.

AI explanation

Because Dviti is a working partner receiving a monthly salary of Rs. 5,000, her total annual salary of Rs. 60,000 is deducted from her total earnings of Rs. 2,00,000, leaving her with a profit share of Rs. 1,40,000. Since Rikita and Priyanka invest 30% and 25% more respectively, their profit shares based on investment ratios are 1.30 times and 1.25 times Dviti's share, which amounts to Rs. 1,82,000 and Rs. 1,75,000. Adding the profit shares of all three partners (140000 plus 182000 plus 175000) gives a total profit of Rs. 4,97,000.

Keep practicing — related questions