Partnership Practice Test 3

Question : 22 of 40

Marks: +1, -0

Two partners invested Rs. 12500 and Rs. 8500 respectively in a business and decided that 60% of the profit incurred from the business will be equally divided between them while remaining profit will be assumed as interest on their capitals. If one of the partners gets Rs. 300 more profit than the other, what is the total profit in the business?

Rs. 3937.50
Rs. 4940.50
Rs. 3936.50
Rs. 4156

Validate

Solution:

Ratio of their capitals = 12500 : 8500 = 25 : 17
Hence, sum of their ratios = 25 + 17 = 42 and difference of ratios =

25 - 17 = 8

Now total profit taken as interest =

300/ 8 × 42

= Rs. 1575
Hence, total profit in the business =

100/ 40 × 1575

= Rs. 3937.50

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