Question:hard

A, B and C are three partners in a business. C is the only working partner. C's investment is one-fifth of B's investment and A's investment is twice that of C. If C gets a salary of Rs. 10,500 a month and A gets a profit share of Rs. 1.44 lakh at the end of the year, then what is the total profit?

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Find the capital ratio A:B:C = 2:5:1 from the given investment relations, then use A's known profit share of Rs. 1.44 lakh as 2 parts out of 8 to find the whole distributable profit.
Updated On: Jul 20, 2026
  • Rs. 3,96,000
  • Rs. 4,16,000
  • Rs. 5,76,000
  • Rs. 6,20,000
  • Rs. 7,20,000
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The Correct Option is C

Solution and Explanation

Work with per-part value directly instead of setting up a proportion equation.
The capital ratio is \(A:B:C=2:5:1\), 8 parts in all. A holds 2 of those 8 parts and is known to receive Rs. \(1,44,000\).
So the value of a single part is:
$$1\text{ part}=\frac{1,44,000}{2}=72,000$$
The total distributable profit is all 8 parts together:
$$P=8\times72,000=5,76,000$$
Cross-check using B: B holds 5 parts, so B's share \(=5\times72,000=3,60,000\); and \(A+B+C=1,44,000+3,60,000+72,000=5,76,000\), which matches. C separately draws a salary of \(10,500\times12=1,26,000\) per year for actively running the business, on top of this profit share, but that salary is a working-partner's remuneration rather than part of the distributable profit figure the question is asking for.\[\boxed{Rs.\ 5{,}76{,}000}\]
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