A and B invest Rs. 3 lakhs and Rs. 4 lakhs in a business. A receives Rs. 1,000…
2025
A and B invest Rs. 3 lakhs and Rs. 4 lakhs in a business. A receives Rs. 1,000 per month out of the profit as a remuneration for running the business and the rest of profit is divided in proportion to the investments. If in a year 'A' totally receives Rs. 39,000, what does B receive?
- A.
Rs. 63,000
- B.
Rs. 46,000
- C.
Rs. 36,000
- D.
Rs. 26,000
Show answer & explanation
Correct answer: C
Concept
When a partner also works to run the business, they first receive a fixed monthly remuneration (salary) for that work; only the profit left after this remuneration is then divided among all partners strictly in the ratio of their capital investments.
Applying it here
A and B invest Rs. 3 lakhs and Rs. 4 lakhs, so their profit-sharing ratio is 3 : 4.
A's annual remuneration = Rs. 1,000 per month × 12 months = Rs. 12,000.
A's total annual receipt is Rs. 39,000, so A's share of the divided profit = Rs. 39,000 − Rs. 12,000 = Rs. 27,000.
Since A's profit share corresponds to 3 parts of the 3 : 4 ratio, one part = Rs. 27,000 ÷ 3 = Rs. 9,000.
B's share corresponds to 4 parts of the ratio, so B receives 4 × Rs. 9,000 = Rs. 36,000.
Cross-check
Total profit for the year = A's remuneration + A's divided-profit share + B's divided-profit share = Rs. 12,000 + Rs. 27,000 + Rs. 36,000 = Rs. 75,000. The divided-profit shares are in the ratio 27,000 : 36,000 = 3 : 4, which matches the investment ratio, confirming B receives Rs. 36,000.
Result
So B receives Rs. 36,000.