A and B start a business with capital Rs. 20,000 and 10,000 respectively. A gets 20% of total profit for managing the business. If Rs. 60,000 profit they gain in the end of the year, then find the share of A.
Answer & explanation
Correct answer: option 4
A : B
Inv. : 20000 : 10000
2 : 1
Profit: 2 : 1 = 3R
*If time is same then investment ratio becomes profit ratio*
Now, ATQ
⇒ 20% profit taken by A and remaining 80% (i.e. = 7R) is divided according to their profit ratio.
So,
⇒ 20% of 60000 = 12000 (A's extra profit)
⇒ Remaining = 60000- 12000 = 48000
⇒ Ratio of profit of A and B = 2 : 1 = 3R
3R = 48000
1R = 16000
Hence,
A's total profit = 2R + 12000 = 32000 + 12000 = Rs.44000