A is a working partner and B is a sleeping partner in a business. A puts in Rs. 5000 and B puts in Rs. 6000. A receives 12 1/2% of the profit for managing, the rest being divided in proportion of their capital. What is the share of A out of a profit of Rs. 4400?
Explanation:
A receives 12.5% for managing the business i.e. 4400 × 25/200 = 550
Ration of investment of A : B = 5000 : 6000 = 5 : 6
∴ A’s share in remaining profit = 5/11 × (4400 - 550) = 5 × 350 = 1750
Thus A’s total profit = 1750 + 550 = 2300
Hence, option (b).
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