Question
A and B started a business by investing Rs. 18,000 and
Rs. 27,000 respectively. A also worked as the active manager and for that he is entitled to receive a commission which is equal to 30% of profit. If the difference between the amount received by A and B at the end of the year is Rs. 960, then find the profit (before commission was given to A) earned by them.Solution
Let the profit earned before commission was given to A be Rs. β100xβ Commission of A = 100x Γ 0.30x = Rs. 30x Ratio of profit shares of A to B = 18000:27000 = 2:3 Profit earned by A = (100x β 30x) Γ (2/5) = Rs. 28x Profit earned by B = (100x β 30x) Γ (3/5) = Rs. 42x According to the question 30x + 28x β 42x = 960 Or, 16x = 960 So, x = 60 So, required profit = 60 Γ 100 = Rs. 6,000
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