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    Question

    β€˜K’ and β€˜L’ started a business by investing Rs.

    42,000 and Rs. 35,000, respectively. β€˜L’ manages the business and for that he is entitled to receive a commission of 20% out of the total profit, while the rest of the profit is divided among them in the ratio of their investments. If at the end of the year, β€˜K’ received a profit of Rs. 21,000, then find the total amount received by β€˜L’ at the end of the year.
    A Rs.27,375 Correct Answer Incorrect Answer
    B Rs.20,375 Correct Answer Incorrect Answer
    C Rs.22,000 Correct Answer Incorrect Answer
    D Rs.29,375 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ, Ratio of profit shares of β€˜K’ and β€˜L’ = (42000 Γ— 12):(35000 Γ— 12) = 6:5 Total profit that was divided between β€˜K’ and β€˜L’ = 21000 Γ— (11/6) = Rs. 38,500 Total profit earned from the business = 38500 Γ· 0.8 = Rs. 48,125 Amount received by β€˜L’ at the end of the year = 48,125 – 21,000 = Rs. 27,125

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