Question

Hay, Bee and Cee are partnership sharing profits in the ratio of 5:3:2. Before Bee’s salary of $17,000, the firm’s profit is $97,000. How much in total will Bee receive from the firm as his share of profit?

Answer 1

Explanation:

Solution :

Profit Sharing Ratio :

Hay : Bee : Cee = 5:3:2

• Hay's Share = 5/10
• Bee's Share = 3/10
• Cee's Share = 2/10

Total amount Bee will receive from the firm as his share of profit = Salary + Share of profit

Salary of Bee = $ 17,000

Profit of firm (Before Bee’s salary) = $ 97,000

• After salary profit :

= 97,000 - 17,000

= 80,000

After salary profit : 80,000

• Share of Bee :

= 80,000 × (3/10)

= 24,000

★ Total amount received by Bee = Salary + Share of profit

= 17,000 + 24,000

= 41,000

Total amount received by Bee = $ 41,000

Therefore,

Bee will receive $ 41,000 from the firm.