Question
Download Solution PDFA, B, and C jointly begin a business. A invests Rs. 6,500 for 6 months. B invests Rs. 8,400 for 5 months, and C invests Rs. 10,000 for 3 months. A is the working partner and receives 5% of the profit for day-to-day management of the business. The profit earned was Rs. 7,400. Calculate the share of B in the profit
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Investment by A = Rs. 6,500 for 6 months
Investment by B = Rs. 8,400 for 5 months
Investment by C = Rs. 10,000 for 3 months
Profit earned = Rs. 7,400
A's share in profit for managing = 5%
Formula Used:
Share of each partner = (Investment × Time) / Total investment
Calculation:
Total investment of each partner:
A's investment = 6,500 × 6 = 39,000
B's investment = 8,400 × 5 = 42,000
C's investment = 10,000 × 3 = 30,000
Total investment = 39,000 + 42,000 + 30,000 = 111,000
Profit for A after management fee:
Management fee = 7,400 × 5% = 370
Remaining profit = 7,400 - 370 = 7,030
Share of B in the remaining profit:
B's share = (B's investment / Total investment) × Remaining profit
⇒ B's share = (42,000 / 111,000) × 7,030
⇒ B's share = (420 / 1110) × 7,030
⇒ B's share = 2,660
The share of B in the profit is Rs. 2,660.
Last updated on May 21, 2025
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