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

Hint:

C is not a working partner, so C only receives its share of the profit that is split in the capital investment ratio.

Answer 1

The Correct Option is D

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 (9 parts total).
Value of one part = 18,900 / 9 = Rs. 2,100.
Step 4: Find C's share.
C is not a working partner, so C receives only its share of the remaining profit: \(4 \times 2,100 = Rs.\ 8,400\).\[\boxed{C's\ share = Rs.\ 8,400}\]