Discussions
Mitali Srivastava

· started a discussion

· 1 Months ago

how is share of profit of A excluding commission is 1080

Question:
A and B are two partners and they have invested 54,000 and 90,000 in a business. After one year A received 1800 as his share of profit out of total profit of 3600 including his certain commission on total profit since he is a working partner and rest profit is received by B. What is the commission of A as a percentage of the total profit?
Options:
A) 20%
B) 10%
C) 5%
D) 25%
E) None of these
Solution:

Ans (a) Ratio of profit of A : B (excluding commission of A)

=3 : 5 (∴ 54:90=3:5)

Now the share of profit of B = 3600 - 1800 = \(\unicode{x20B9} \)1800

So the share of profit of A (excluding commission) = \(\cfrac{1800\times3}{5}\)    = 1080

So the commission of A = 1800  - 1080 = 720

Therefore the required percentage = \(\cfrac{720}{3600}× 100 = 20\%\)

Knowledge Expert

· commented

· 1 Months ago

Because total profit is 3600 in which 1800 too A, in which his commission is also included....remaining amount 1800 took B...

And the ratio of profit between A and B is 3:5

So, pure profit has been taken by B which is 1800.

Let 3x and 5x are the profit of A and B.

so, 5x=1800

x=360

So, profit of A should be 3x = 3*360 = 1080

But he took 1800, so his commission will be =1800-1080 = 720

All Rights Reserved Top Rankers