Question

A, B and C started a business with an investment of Rs. 12000, Rs. 16000 and Rs. 10000 respectively. A and B are working partner and they get a fixed monthly salary of Rs. 5000 and Rs. 7000 respectively out of the profit that the company makes. Find out the earnings of C if the company makes a profit of Rs. 524000 at the end of the year.
1. Rs. 64000
2. Rs. 120000
3. Rs. 136000
4. Rs. 95000
5. Rs. 100000

Answer 1

Correct Answer - Option 5 : Rs. 100000

Given:

Investment of A, B and C is Rs. 12000, Rs. 16000 and Rs. 10000 respectively.

A and B are working partner.

Salary of A and B is Rs. 5000 and Rs. 7000 respectively.

Total profit at the end of the year = Rs. 524000.

Calculation:

Share of investment of A, B and C = 6 : 8 : 5

A’s annual salary = 5000 × 12 = Rs. 60000

B’s annual salary = 7000 × 12 = Rs. 84000

Remaining profit after the deduction of salaries of A and B = 524000 – (60000 + 84000) = Rs. 380000

C’s share = (5/19) × 380000 = Rs. 100000

∴ Earning of C after the end of the year = Rs. 100000