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 A?

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

Hint:

First take out A's and B's fixed salary percentages from the total profit, then divide what is left in the ratio of the three capitals.

Answer 1

The Correct Option is C

Step 1: Work out the fixed salaries.
A's salary = 10% of Rs. 27,000 = Rs. 2,700.
B's salary = 20% of Rs. 27,000 = Rs. 5,400.
Step 2: Find the profit left after salaries.
Remaining profit = 27,000 - 2,700 - 5,400 = Rs. 18,900.
Step 3: Split the remainder in the capital ratio.
Capitals 6,000 : 9,000 : 12,000 reduce to 2 : 3 : 4, so there are 9 equal parts.
Value of one part = 18,900 / 9 = Rs. 2,100.
A's share of the remainder = 2 x 2,100 = Rs. 4,200.
Step 4: Add salary and share of remainder.
A's total share = 2,700 + 4,200 = Rs. 6,900.\[\boxed{A's\ share = Rs.\ 6,900}\]