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Discussion

  1. A and B are two partners and they have invested Rs. 54,000 and Rs. 90,000 in business. After one year A received Rs 1800 as his share of profit out of total profit of Rs. 3600 including his certain commission on total profit since he is a working partner and rest profit is received by B. what is the commission of A as a percentage of the total profit?
    1. 20%
    2. 10%
    3. 5%
    4. 25%
  1. Correct Option: A

    Ratio of profit of A : B (excluding commission of A) = 3 : 5 ( 54 : 90)
    Now the share of profit of B = 3600 - 1800 = Rs. 1800
    So the share of profit A (excluding commission ) = Rs. 1080
    So the commission of A = 1800 - 1080 = 720
    Therefore the required percentage = (720 / 3600) x 100 = 20%

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