Multiple choice

Gupta and Kohli start a business investing Rs. 7000 and Rs. 12,000, respectively. Gupta is the working partner, getting Rs. 250 per month as remuneration. How much does Gupta get for the full year, if the profit is Rs. 8700?

  1. Rs. 2100

  2. Rs. 5100

  3. Rs. 5600

  4. Rs. 6000

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

Ratio of investment = 7000:12000 = 7:12. Total profit = 8700. Gupta's remuneration = 250 * 12 = 3000. Remaining profit = 8700 - 3000 = 5700. Gupta's share = (7/19) * 5700 = 7 * 300 = 2100. Total = 2100 + 3000 = 5100.

AI explanation

As the working partner, Gupta first receives a salary of Rs. 250 per month for 12 months, totaling Rs. 3000, which leaves a remaining divisible profit of 8700 - 3000 = Rs. 5700. This remaining profit is shared in the ratio of their investments of 7000 : 12000, which simplifies to 7 : 12, making the total 19 parts. Gupta's share from the profit is (7 / 19) * 5700 = Rs. 2100, so his total earnings are the salary plus this profit share, 3000 + 2100 = Rs. 5100.

Keep practicing — related questions