Business Profit Distribution: Sunil's Share Calculation
This solution outlines the steps to determine Sunil's share of the profit based on investments and profit distribution rules.
1. Calculate Total Investment
First, sum the investments made by Amar, Akbar, and Sunil.
- Amar's Investment: ₹15,600
- Akbar's Investment: ₹10,400
- Sunil's Investment: ₹11,700
- Total Investment = ₹15,600 + ₹10,400 + ₹11,700 = ₹37,700
2. Calculate Total Profit
The total profit is 20% of the total investment.
- Total Profit = 20% of ₹37,700
- \( \text{Total Profit} = 0.20 \times 37700 = ₹7,540 \)
3. Calculate Reinvested Profit
A portion of the profit, 5%, is planned for reinvestment.
- Reinvested Profit = 5% of ₹7,540
- \( \text{Reinvested Profit} = 0.05 \times 7540 = ₹377 \)
4. Calculate Remaining Profit for Distribution
Subtract the reinvested profit from the total profit to find the amount to be distributed.
- Remaining Profit = Total Profit - Reinvested Profit
- \( \text{Remaining Profit} = 7540 - 377 = ₹7,163 \)
5. Determine Investment Ratio
The remaining profit is distributed according to the ratio of their investments.
- Investment Ratio = Amar : Akbar : Sunil
- Ratio = 15,600 : 10,400 : 11,700
- Simplify by dividing by 100: 156 : 104 : 117
- Simplify further by dividing by their Greatest Common Divisor (GCD), which is 13:
- \( \frac{156}{13} : \frac{104}{13} : \frac{117}{13} \)
- Simplified Ratio = 12 : 8 : 9
6. Calculate Sunil's Share of Profit
Sunil's share is calculated based on his part in the investment ratio relative to the total ratio parts.
- Sum of ratio parts = 12 + 8 + 9 = 29
- Sunil's ratio part = 9
- Sunil's Profit Share = \( \left( \frac{\text{Sunil's Ratio Part}}{\text{Sum of Ratio Parts}} \right) \times \text{Remaining Profit} \)
- \( \text{Sunil's Profit Share} = \left( \frac{9}{29} \right) \times 7163 \)
- \( \text{Sunil's Profit Share} = 9 \times \left( \frac{7163}{29} \right) \)
- \( \text{Sunil's Profit Share} = 9 \times 247 = ₹2,223 \)
Therefore, Sunil's share in the profit is ₹2,223.
Similar Questions
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Important Questions from Partnership
A, B and C invest in a business in the ratio 4 ∶ 5 ∶ 7. C is a sleeping partner, so his share of profits will be half of what it would have been if he were a working partner. If they make Rs 36,000 profit of which 25% is reinvested in the business, how much does B get (in Rs)?
Sumit, Ravi and Puneet invest Rs. 45000, Rs. 81000 and Rs. 90000 respectively to start a business. At the end of the year the total profit is Rs. 4800. 30% of the total profit gives in charity and rest is divided among them. What will be the share of Sumit?
A sum of ₹ 159250 is divided among A, B, C, and D such that the ratio of the shares of A and B is 1 : 3, that of B and C is 2 : 5, and that of C and D is 2 : 3. The share (in ₹) of A is:
A and B start a business by investing Rs. 1,00,000 and Rs. 1,50,000 respectively. Find the respective share of each out of a total profit of Rs. 24, 000.
Two partners A and B have started business with the capitals of Rs. 6,000 and Rs. 8,000 respectively. If they made profit of Rs. 5,600 then the share (in Rs.) of A is:
