A and B started a business with ₹50000 and ₹20000. If A is working partner and takes 20% of the total profit as his salary and remaining profit is divided according to their capital, in this process A received ₹38000 more than B. Find the amount of total profit.
Answer & explanation
Correct answer: option 3
A : B
Inv. : 50000 : 20000
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
⇒ Total Profit = 35R = 35 × 2000 = Rs.70000