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A, B and C enter into partnership with capital contribution of $ 25,000, $ 30,000 and $ 15,000 respectively. A is the working partner and he gets 30% of the profit for managing the business. The balance profit is distributed in proportion to the capital investment. At the year-end, A gets Rs. 200 more than B and C together. Find the total profit.
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- $ 2500
- $ 2000
- $ 2200
- $ 2400
Correct Option: B
Let the total profit be $ 100
A’s share for managing the business which is 30% of profit= $ 30
Balance profit = $ (100–30)= $ 70
Ratio of capital investment;
A : B : C = $ 25000 : Rs. 30000 : $ 15000
A : B : C = 5 : 6 : 3
Sum of ratios = 5 + 6 + 3 = 14
| Now, | = $ 5 | 14 |
Share of profit A’s = $ 5 × 5 = $ 25
B’s = $ 5 × 6 = $ 30
C’s = $ 5 × 3 = $ 15
A’s total share of profit = $ 30 + $ 25 = $ 55
Profit share of B and C put together = $ 30 + $ 15 = $ 45
A’s – (B’s + C’s) share = $ 55 – $ 45 = $ 10
When the difference is $ 10, the total profit is $ 100
When the difference is $ 200 (i.e., 10 × 20) total profit is $ 100 × 20 = $ 2000
