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A and B started a business in partnership by investing Rs. 10,000 and Rs. 4000 respectively. The condition of partnership is that B will get Rs. 1200 from the annual profit for the management of the business. A and B also paid 5% interest for their capital from their profit amount. The remaining annual profit is distributed between them in the ratio of their investment. Find the total share of A in the total annual profit of Rs. 4000.
  • a)
    Rs. 3000
  • b)
    Rs. 2500
  • c)
    Rs. 1500
  • d)
    Rs. 2000
  • e)
    None of these
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A and B started a business in partnership by investing Rs. 10,000 and...
Given information:
- A invests Rs. 10,000
- B invests Rs. 4000
- B receives Rs. 1200 as management fees
- A and B both receive 5% interest on their capital from the profit amount
- The remaining profit is distributed between A and B in the ratio of their investment

To find:
- Total share of A in the total annual profit of Rs. 4000

Calculations:

1. Calculation of interest:
- A's interest = 5% of Rs. 10,000 = Rs. 500
- B's interest = 5% of Rs. 4000 = Rs. 200

2. Calculation of remaining profit:
- Total profit = Rs. 4000
- Management fees = Rs. 1200
- Interest for A = Rs. 500
- Interest for B = Rs. 200
- Remaining profit = Total profit - Management fees - Interest for A - Interest for B
= Rs. 4000 - Rs. 1200 - Rs. 500 - Rs. 200
= Rs. 2100

3. Distribution of remaining profit:
- Ratio of A's investment to B's investment = 10000:4000 = 5:2
- Share of A = (Remaining profit * A's investment ratio) / (Sum of investment ratios)
= (2100 * 5) / (5 + 2)
= Rs. 1500

Therefore, the total share of A in the total annual profit of Rs. 4000 is Rs. 1500. Answer option (c) is correct.
Free Test
Community Answer
A and B started a business in partnership by investing Rs. 10,000 and...
B's salary in 1 year = Rs. 1200
Interest of A = 10000 × (5/100) = Rs. 500
Interest of B = 4000 × (5/100) = Rs. 200
Remaining profit = 4000 – (1200 + 500 + 200) = 4000 – 1900 = Rs. 2100
Share of A in remaining profit
= [10000 / (10000 + 4000)] × 2100 = (5/7) × 2100 = Rs. 1500
Share of B in remaining profit
= [4000 / (10000 + 4000)] × 2100 = (2/7) × 2100 = Rs. 600
Total share of A in profit = 500 + 1500 = Rs. 2000
Hence, the correct option is (D).
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A and B started a business in partnership by investing Rs. 10,000 and Rs. 4000 respectively. The condition of partnership is that B will get Rs. 1200 from the annual profit for the management of the business. A and B also paid 5% interest for their capital from their profit amount. The remaining annual profit is distributed between them in the ratio of their investment. Find the total share of A in the total annual profit of Rs. 4000.a)Rs. 3000b)Rs. 2500c)Rs. 1500d)Rs. 2000e)None of theseCorrect answer is option 'D'. Can you explain this answer?
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A and B started a business in partnership by investing Rs. 10,000 and Rs. 4000 respectively. The condition of partnership is that B will get Rs. 1200 from the annual profit for the management of the business. A and B also paid 5% interest for their capital from their profit amount. The remaining annual profit is distributed between them in the ratio of their investment. Find the total share of A in the total annual profit of Rs. 4000.a)Rs. 3000b)Rs. 2500c)Rs. 1500d)Rs. 2000e)None of theseCorrect answer is option 'D'. Can you explain this answer? for Banking Exams 2025 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about A and B started a business in partnership by investing Rs. 10,000 and Rs. 4000 respectively. The condition of partnership is that B will get Rs. 1200 from the annual profit for the management of the business. A and B also paid 5% interest for their capital from their profit amount. The remaining annual profit is distributed between them in the ratio of their investment. Find the total share of A in the total annual profit of Rs. 4000.a)Rs. 3000b)Rs. 2500c)Rs. 1500d)Rs. 2000e)None of theseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Banking Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B started a business in partnership by investing Rs. 10,000 and Rs. 4000 respectively. The condition of partnership is that B will get Rs. 1200 from the annual profit for the management of the business. A and B also paid 5% interest for their capital from their profit amount. The remaining annual profit is distributed between them in the ratio of their investment. Find the total share of A in the total annual profit of Rs. 4000.a)Rs. 3000b)Rs. 2500c)Rs. 1500d)Rs. 2000e)None of theseCorrect answer is option 'D'. Can you explain this answer?.
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