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If total profit is Rs 240000 and first A gets salary Rs 30000 B gets commission Rs 20000 then remaining profit is shared in ratio two to three to one. What is Cs share?

Answer and explanation

Correct answer: About Rs 31667

The total profit is Rs 240,000. The agreed salary to A and commission to B are appropriations made before the remaining profit is divided. First subtract Rs 30,000 salary and Rs 20,000 commission: Rs 240,000 − Rs 30,000 − Rs 20,000 = Rs 190,000. This remaining amount is shared among A, B, and C in the ratio 2:3:1. The total of the ratio parts is 6, so C’s share is one part out of six.

C’s amount is therefore Rs 190,000 × 1/6 = Rs 31,666.67, which is approximately Rs 31,667. Hence option A is correct. The salary and commission are not included again in C’s ratio share, because they have already been deducted before the residual profit is distributed. The other options do not equal one-sixth of the remaining Rs 190,000.

Related tags

Multiple AppropriationsC ShareProfit Ratio

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