X and Y are partners in a business. X invests ₹85,737, and Y invests ₹57,158.…
2026
X and Y are partners in a business. X invests ₹85,737, and Y invests ₹57,158. X receives 8% of the total profit for managing the business, and the remaining profit is divided in proportion to their capital. What amount does X receive from a total profit of ₹37,875?
Answer: B. ₹23,937 — ConceptWhen partners invest for the same duration, the distributable profit is shared in the ratio of their capitals. Any fixed management commission is…
- A.
₹23,979
- B.
₹23,937
- C.
₹23,889
- D.
₹23,892
Attempted by 11 students.
Show answer & explanation
Correct answer: B
Concept
When partners invest for the same duration, the distributable profit is shared in the ratio of their capitals. Any fixed management commission is deducted from the total profit first, and only the remainder is divided by the capital ratio. Thus, a managing partner receives the commission plus that partner’s proportional share.
Application
The capital ratio is X : Y = 85,737 : 57,158 = 3 : 2, because 85,737 = 28,579 × 3 and 57,158 = 28,579 × 2.
X’s management commission is 8% of ₹37,875 = (8/100) × ₹37,875 = ₹3,030.
The profit left for proportional division is ₹37,875 − ₹3,030 = ₹34,845.
X’s proportional share is 3/5 of ₹34,845 = ₹20,907.
Therefore, X’s total receipt is ₹3,030 + ₹20,907 = ₹23,937.
Cross-check
Y receives 2/5 of ₹34,845 = ₹13,938. The two final receipts add to ₹23,937 + ₹13,938 = ₹37,875, which equals the total profit.