Multiple choice

Three partners K, A and M invest Rs.75000, Rs.90000, Rs.105000 respectively in a business, K receives 12.5% of the profit as Manager and A receives 7.5% of the profit as Assistant Manager, after which the remaining profit is divided in proportion to the capital subscribed by each. Find the share of M when K receives Rs.9375.

  1. 7800 Rs

  2. 8600 Rs

  3. 9200 Rs

  4. 8400 Rs

  5. None of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

K receives Rs.9375 as 12.5% of profit. So total profit P = 9375/0.125 = Rs.75000. A receives 7.5% = Rs.5625. Remaining profit = 75000 - 9375 - 5625 = Rs.60000. This is divided in capital ratio 75000:90000:105000 = 75:90:105 = 5:6:7 (dividing by 15000). Total parts = 18. M's share of remaining = (7/18) × 60000 = Rs.23333.33. But this is just the remaining portion. Actually, re-reading: K receives 12.5% as Manager, A receives 7.5% as Assistant. Then remaining is divided. M gets only from the remaining portion (no special percentage). So M's total = Rs.23333. But option D is 8400 Rs. Let me recalculate more carefully. Total investment = 75000+90000+105000 = 270000. Profit = 75000. After removing 12.5%+7.5% = 20% = 15000, remaining = 60000. M's share = (105000/270000) × 60000 = (7/18) × 60000 = 23333. This doesn't match 8400. Wait - perhaps the profit is different. If K receives 9375 as his total (including both 12.5% and his share of remaining), then total profit calculation differs. Let's re-examine: If 9375 = 12.5% of P + K's share of remaining. K's capital ratio = 75000/270000 = 5/18. So 9375 = 0.125P + (5/18)(P - 0.125P - 0.075P) = 0.125P + (5/18)(0.8P) = 0.125P + 0.222P = 0.347P. So P = 9375/0.347 ≈ 27000. Then remaining = 27000 × 0.8 = 21600. M's share = (7/18) × 21600 = 8400. ✓