Question
‘A’ and ‘B’ started a business
by investing certain sum in the ratio 8:5, respectively for 4 years. If 22% of the total profit is donated in an orphanage and A’s share is Rs. 2556, then find the total profit generated from the business.Solution
Since, ‘A’ and ‘B’ invested their sums for equal period, therefore, ratio of the profit received by ‘A’ and ‘B’ will be equal to the ratio of sum invested by them i.e. 8:5, respectively Let the total profit received by them be Rs. 100x Therefore, profit distributed between ‘A’ and ‘B’ = 0.78 × 100x = Rs. 78x Profit received by ‘A’ = 78x × (8/13) = Rs. 48x According to the question, 48x = 2556 => x = 53.25 Therefore, total profit received by ‘A’ and ‘B’ = 100x = Rs. 5325
Which of the following is not regarded as Time adjusted or Discounted Cash flows technique of capital budgeting?
In insurance accounting, what is "policyholder surplus"?
A business has monthly cash inflows of ₹10 lakh and monthly outflows of ₹12 lakh. What is the working capital requirement as per the Cash Budget Met...
What does Miscellaneous Insurance encompass?
What is the primary purpose of bookkeeping in business?
Which of the statements is correct with respect to a company that has announced a bonus issue according to Rule 14 of the Companies (Share Capital and D...
The DuPont Analysis uses the following ratios except:
When the total of debit and credit are equal, it represents
Which of the following is not considered as a Current Liability?
Mr. Rohit and Mrs. Rohit hold 20% and 30% equity shares in Virat Ltd., respectively. They are employed in Virat Ltd. (taxable salary being ₹2,20,000 p...