Question

A, B and C are three associates in a firm. A invests Rs. 6,000, B invests Rs. 9,000 and C invests Rs. 12,000. A and B are the working partners and get 10% and 20% of the profit respectively as their salary, and the remaining profit is distributed in the ratio of their capitals. If the profit made at the end of the year is Rs. 27,000, then what is the share of C?

• A. Rs. 2,300
• B. Rs. 3,900
• C. Rs. 6,900
• D. Rs. 8,400
• E. Rs. 12,300

Hint:

Only A and B draw a fixed salary from the profit; C's whole share comes purely from the 2 : 3 : 4 capital ratio applied to the profit left after paying those salaries.

Answer 1

The Correct Option is D

Step 1: Work out the salaries paid to the working partners.
Total profit = Rs. 27,000.
A's salary = 10% of 27,000 = \( \frac{10}{100} \times 27000 = \) Rs. 2,700
B's salary = 20% of 27,000 = \( \frac{20}{100} \times 27000 = \) Rs. 5,400
Total salary paid out = 2,700 + 5,400 = Rs. 8,100

Step 2: Find the profit left for capital-based sharing.
Remaining profit = 27,000 - 8,100 = Rs. 18,900

Step 3: Write the capital ratio of A, B and C.
A : B : C = 6000 : 9000 : 12000 = 2 : 3 : 4, so total parts = 2 + 3 + 4 = 9

Step 4: Find C's share.
C is not a working partner, so C draws no salary. C's entire earning comes from the capital-ratio split of the remaining Rs. 18,900.
C's share = \( \frac{4}{9} \times 18900 = \) Rs. 8,400

So the share of C is Rs. 8,400, which matches option (d).