Partnership Practice Test 1

Question : 24 of 40

Marks: +1, -0

A and B jointly invest Rs. 2100 and Rs. 3100 respectively in a firm. A is an active partner and hence he gets 25% of the profit separately. If their business yields them total Rs. 1040 as profit, what will be the gain of each of them?

Rs. 415, Rs. 625
Rs. 575, Rs. 465
Rs. 515, Rs. 525
Rs. 560, Rs. 480

Validate

Solution:

Separate profit for A =

{1040× 25}/100

= Rs. 260
Remaining profit = Rs. (1040 – 260) = Rs. 780
Ratio of capitals of A and B = 2100 : 3100 = 21 : 31
A’s profit =

21/52 × 780

= Rs. 315
B’s profit =

31/52 × 780

= Rs. 465
Total profit of A = Rs. (315 + 260) = Rs. 575
Therefore A and B will make profit of Rs. 575 and Rs. 465 respectively

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