Multiple choice

M and N are partners in a firm out of which M is sleeping partner and N is working partner. M invests Rs 90000 and N invests Rs 45000. N receives 14.5% of profit for managing the business and the rest is shared between both in ratio of their investments. M’s share in the profit of Rs 12000 is:

  1. 3420

  2. 6840

  3. 10260

  4. 4200

  5. None of these

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

Total profit = Rs 12000. N's commission = 14.5% of 12000 = Rs 1740. Remaining profit = 12000 - 1740 = Rs 10260. Investment ratio M:N = 90000:45000 = 2:1. M's share = (2/3) × 10260 = Rs 6840. Option B is correct.