A working partner gets a commission of 20% of the profit for being the active partner. The commission is worked out after Rs 9,000 of the profit is donated to a trust, and he receives Rs 7,000 as his commission. Find the total profit of the business.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs 44,000
The donation is taken out first, and the 20% commission is worked out on the profit that is left. So the commission gives the remaining profit, and the donation is then added back.
20% of (profit left after the donation) \(=\) Rs 7,000
Profit left after the donation \(\displaystyle =\frac{7000\times100}{20}=\) Rs 35,000
Total profit \(=35000+9000=\) Rs 44,000
The total profit is Rs 44,000.
Why the other options are incorrect
Option (1) Rs 32,000 — Incorrect. After the Rs 9,000 donation only Rs 23,000 would remain, and 20% of it is Rs 4,600, not Rs 7,000.
Option (3) Rs 35,000 — Incorrect. This is only the profit after the donation; the Rs 9,000 given to the trust has not been added back.
Option (4) Rs 40,000 — Incorrect. After the Rs 9,000 donation only Rs 31,000 would remain, and 20% of it is Rs 6,200, not Rs 7,000.