Partnership Practice Test 1

Question : 33 of 40

Marks: +1, -0

A and B started a business by investing Rs 3,50,000 and Rs 1,40,000 respectively. A gets 20% of the yearly profit for managing the business. Thereafter, the profit is divided in the ratio of the capital. If A receives totally Rs 38,000 more than B at the end of the year, then the profit is:

Rs 28,000
Rs 2,80,000
Rs 1,05,000
Rs 70,000

Validate

Solution:

Ratio of capital of A and B
= 3,50,000 : 1,40,000
= 35 : 14
= 5 : 2
Let the profit = x
A get the profit for managing the business

={20×x}/100=x/5

Remaining profit

=x-x/5=4/5x

[x/5+(4/5x×5/7)]-[2/7×4/5x]=38,000

x/5+4/7x-8/35x=38,000

x=70,000

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