Multiple choice

Shivam and Ravi started a business in partnership by investing Rs 65000 and Rs 45000 respectively. Condition of partnership is that Shivam got 12 % of total profit for management of the business. Remaining profit has to be distributed in the ratio of their investments. Find the profit share of Ravi, if the annual profit is Rs 87500.

  1. 30000

  2. 35000

  3. 31500

  4. 36000

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total profit = Rs 87500. Shivam gets 12% for management = 87500 * 0.12 = 10500. Remaining profit = 87500 - 10500 = 77000. Investment ratio: Shivam:Ravi = 65000:45000 = 13:9. Ravi's share from remaining = 77000 * (9/22) = 77000 * 9/22 = 3500 * 9 = 31500. Option C is correct.

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