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SAI PRASHANTH

· started a discussion

· 1 Months ago

need help (Question: 107255.0 )

if 60% profit is shared..then there difference of profit 60% should be 300...but how 40% could be.....please explain

Question:
Two partners invest Rs.1,25,000 and Rs.85000 respectively in a business and agree that 60% of the profit should be divided equally between them and the remaining profit is to be treated as interest on capital. If one partner gets Rs.300 more than the other, find the total profit made in the business.
Options:
A) Rs.3739.50
B) Rs.3937.50
C) Rs.3749.50
D) Rs.3947.50
E) None of these
Solution:

The ratio of profit = 125,000 : 85,000

= 25: 17

∴ 60% is divided equally. So the difference between 40% of their profit is 300/-

i.e. \(\frac{40}{100}\)  × 25x -  \(\frac{40}{100}\) × 17x = 300

10x - 6.8x = 300

3.2 x = 300

x = 93.75

Total profit = 25x + 17x = 42x

= 42 × 93.75

= Rs.3937.50

Knowledge Expert

· commented

· 1 Months ago

Dear Student,

See the Detail Solution:
The difference counts only due to the 40% of the profit which was distributed according to their investments.
Let the total profit be Rs x.
Then 40% of x is distributed in the ratio 125,000 : 85,000 = 25 : 17
Therefore, the share of the first partner
=40% of x (25/(25+17))
=40% of x (25/42)=40x/100 (25/42)=5x/21
andthe share of the second partner
=40% of x (17/42)=17x/105
Now, from the question,
thedifference in share = 5x/21-17x/105=300
or,(x(25-17))/105=300
∴ x = (300×105)/8=Rs.3937.50
Quiker Mothod: Applying the above rule, we have,
Step I: The ratio of profit = 125,000 : 85,000 = 25 : 17
Step II: total profit = 300(100/40)((25+17)/(25-17))
= Rs. 3937.50

Hope it helps.
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