A, B and C are partners in a business. Their capitals are respectively, Rs.5000, Rs.6000 and Rs.4000. A gets 30% of the total profit for managing the business. The remaining profit is divided among three in the ratio of their capitals. In the end of the year, the profit
Q1. A, B and C are partners in a business. Their capitals are respectively, Rs.5000, Rs.6000 and Rs.4000. A gets 30% of the total profit for managing the business. The remaining profit is divided among three in the ratio of their capitals. In the end of the year, the profit
Answer: Rs0.30
Explanation: A's management share = 30% of profit; remaining 70% is split in capital ratio 5:6:4; A's total share = 30% + 70%×(5/15) = 30% + 23.33% = 53.33%, and B's share = 70%×6/15 = 28%; on a Rs. 2100 profit (for example), the shares can be computed proportionally.