Multiple choice

A, B and C enter into a partnership with Rs. 3,50,000, Rs. 3,00,000 and Rs. 1,50,000 resp. A is active partner and gets 30% profit. The remaining profit is divided in proportion to the capital investment. At the end of year A gets Rs. 17,000 more than B and C together. Find total profit.

  1. Rs. 60,000

  2. Rs. 80,000

  3. Rs. 85,000

  4. Rs. 95,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ratio of investments A:B:C = 35:30:15 = 7:6:3. Total parts = 16. A gets 30% profit, remaining 70% is split. A's total share = 0.3P + (7/16)*0.7P = 0.3P + 0.30625P = 0.60625P. B+C share = (9/16)*0.7P = 0.39375P. Difference: 0.60625P - 0.39375P = 0.2125P = 17000. P = 17000 / 0.2125 = 80000.

AI explanation

Let the total profit be P, so A's active partner commission is 0.3P and the remaining profit is 0.7P. The capital ratio is 350000 to 300000 to 150000, which simplifies to 7 to 6 to 3, meaning B's share of the remaining profit is (6 divided by 16) of 0.7P and C's share is (3 divided by 16) of 0.7P. Together, B and C earn (9 divided by 16) of 0.7P, which equals 0.39375P, while A's total earnings are 0.3P plus (7 divided by 16) of 0.7P, equaling 0.60625P. Setting the difference equal to Rs. 17000, we write 0.60625P minus 0.39375P equals 17000, so 0.2125P equals 17000, yielding a total profit P of Rs. 80000.

Keep practicing — related questions