Two partners A and B invested Rs 70,000 and Rs 50,000 respectively in a business. Both the partners distribute 75% of the profit equally and distribute the rest 25% in proportion to their investments. If one partner received Rs 4,000 more than the other, find the total profit.
Ratio of their investments (A’s : B’s)= = 70,000 : 50,000 = 7 : 5 Let shares of A and B be 7x and 5x in 25% of the profit. ∴ 7 x - 5 x = 4,000 ⇒ 2x = 4,000 ∴ x =2,000 ∴ 25% of the total profit = 12 x = 12 × 2,000 = 24,000 ∴Total profit = (24000 ×100)/25 = Rs. 96,000
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