Question

Aditya and Ajay started a business and invested Rs. 52500 and Rs. 75000 respectively. At the end of the year, they decided to distribute 50% of profit equally among them and remaining in capital ratio. Had they distributed the entire profit in capital ratio, Aditya would have got Rs. 2250 less. Find the total profit amount.
1. Rs. 51000
2. Rs. 34000
3. Rs. 59500
4. Rs. 68000

Answer 1

Correct Answer - Option 1 : Rs. 51000

Given:

Aditya and Ajay started a business and invested Rs. 52500 and Rs. 75000 respectively. At the end of the year, they decided to distribute 50% of profit equally among them and remaining in capital ratio

Formula Used:

Profit = Investment × Time

Calculation:

The ratio of their investments = 525 : 750 = 7 : 10

Let the total profit be Rs. x

After 50% distribution,

Aditya's share = x/4 + x/2(7/17)

⇒ 31x/68

Ajay's share = x/4 + x/2(10/17)

⇒ 37x/68

If profit was distributed based on capital ratio,

Aditya's share = 7x/17

According to question,

31x/68 - 7x/17 = 2250

⇒ x = 51000

∴ The total profit is Rs. 51000.