Question:medium

A, B and C are three associates in a firm. A invests Rs. 6,000, B invests Rs. 9,000 and C invests Rs. 12,000. A and B are the working partners and get 10% and 20% of the profit respectively as their salary, and the remaining profit is distributed in the ratio of their capitals. If the profit made at the end of the year is Rs. 27,000, then what is the share of C?

Show Hint

Only A and B draw a fixed salary from the profit; C's whole share comes purely from the 2 : 3 : 4 capital ratio applied to the profit left after paying those salaries.
Updated On: Jul 20, 2026
  • Rs. 2,300
  • Rs. 3,900
  • Rs. 6,900
  • Rs. 8,400
  • Rs. 12,300
Show Solution

The Correct Option is D

Solution and Explanation

Another way to find C's share is to first work out what fraction of the whole profit C actually walks away with, then apply that fraction directly to Rs. 27,000.

Since A takes 10% and B takes 20% of the profit as salary, the portion of profit left for the capital-based split is $100\% - 10\% - 20\% = 70\%$ of the profit.
$70\%$ of $27000 = 0.70 \times 27000 = Rs.\ 18900$

C's capital is Rs. 12,000 out of the combined capital of $6000 + 9000 + 12000 = Rs.\ 27000$, so C's share of this 70% pool is $\frac{12000}{27000} = \frac{4}{9}$.

C's share $= \frac{4}{9} \times 18900 = 4 \times 2100 = Rs.\ 8400$

Since C receives no salary at all, this is C's complete share of the year's profit.
\[\boxed{Rs.\ 8400}\]
Was this answer helpful?
0


Questions Asked in IBSAT exam