A and B start a business with capital Rs. 3,50,000 and Rs. 1,40,000 respectively. A gets 20% from their total profit for managing the business. If A gets Rs. 38,000 more profit than B, then find the share of B.
Answer & explanation
Correct answer: option 2
A : B
Inv. : 350000 : 140000
5 : 2
Profit: 5 : 2 = 7R ......(i)
*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% = \(\frac{1}{5}\) = \(\frac{7}{35}\)
⇒ Remaining = 80% = \(\frac{4}{5}\) = \(\frac{28}{35}\) ....(ii)
Multiply (i) by 4 to compare with (ii):
A : B ⇒ 80% : 20%(A) : Total
Profit: 20 : 8 ⇒ 28 : 7 : 35
Hence,
A's total profit = 20R + 7R = 27R
Difference b/w profit of A and B = 27R - 8R = 19R
⇒ 19R = 38000
⇒ 1R = 2000
⇒ B's Profit = 8R = 8 × 2000 = Rs.16000