Two partners invest rs 125000 and rs 85000 respectively in a business and agree that 60 % of the profit should be divided equally between them and the remaining profit is to be treated as interest on capital. if one partner gets rs 300 more than the other, find the total profit made in the business.
a.rs 3739.50
b.rs 3937.50
c.rs 3749.50
d.rs 3947.50
Answers
ie 25:17
25x+ 17 x = 40% of profit
42x = 40% of profit
25x-17x = 300
8x= 300
x = 37.5
42x = 37.5*42= 1575
total profit = 1575/40* 100=3937.5
Answer:
Total profit made in the business = Rs. 3937.50
Step-by-step explanation:
Given:
Capital investment amounts by two partners are Rs.1,25,000 and Rs.85,000
They are in the ratio 125:85 = 25:17
Let the total profit be P.
If 60% of the profit is divided equally between two partners, 40% is the profit that has to be treated as interest on capital.
40% of profit of shared among two partners in the ratio of 25:17
Share of partner A = 40/100 * P * 25 / (25+17)
= (40 /100) * P * 25/42
= 10P / 42
Share of partner B = 40/100 * P * 17 / (25+17)
= (40 /100) * P * 17/42
= 68P / 420
It is given that the difference of two profit shares is Rs.300
So, 10P / 42 - 68P / 420 = 300
P (100-68) / 420 = 300
32P / 420 = 300
P = 300*420 / 32
P = 3937.5
Total profit on the capital = Rs.3937.5