A and B are two partners and they have invested Rs. 54,000 and Rs. 90,000 in business. After one year A received Rs 1200 as his share of profit out of total profit of Rs. 4200 including his certain commission on total profit since he is a working partner and rest profit is received by B. What is the commission of A as a percentage of the total profit?a)B. What is the commission of A as a percentage of the total profit?b)What is the commission of A as a percentage of the total profit?A. 1200B. 1100c)1500d)1250e)None of theseCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Given:
Investment of A = Rs. 54,000
Investment of B = Rs. 90,000
Profit received by A = Rs. 1,200
Total profit = Rs. 4,200

To find:
Commission of A as a percentage of total profit

Let's solve this problem step by step.

Step 1: Calculate the profit sharing ratio
The profit sharing ratio is determined based on the investments made by A and B. Since A has invested Rs. 54,000 and B has invested Rs. 90,000, the profit sharing ratio will be 54,000:90,000, which can be simplified to 3:5.

Step 2: Calculate the share of profit for B
Since A received Rs. 1,200 as his share of profit, the remaining profit of Rs. (4,200 - 1,200) = Rs. 3,000 will be B's share.

Step 3: Calculate the commission of A
Since A is a working partner, he receives a certain commission on the total profit. Let's assume the commission rate as x%.

The commission received by A can be calculated as:
Commission of A = (x/100) * Total profit

But we know that A received Rs. 1,200 as his share of profit, including his commission. So we can write:
A's share of profit + A's commission = Rs. 1,200

Substituting the values, we get:
1,200 + (x/100) * 4,200 = 1,200

Simplifying the equation, we get:
(x/100) * 4,200 = 0

Since the total profit cannot be zero, the only possibility is that the commission rate x is zero.

Step 4: Calculate the commission of A as a percentage of the total profit
Since the commission rate is zero, the commission of A as a percentage of the total profit is also zero.

Therefore, the correct answer is option A) 0%.

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