The capital of A and B are Rs. 20,000 and Rs. 4,000 respectively. A is entitled to be paid a salary of 1,200 per annum being a working partner. If the gross profit for one year is Rs. 1,800, their shares in the profit are respectively
Explanation:
A : B
Capital 20,000 : 4,000
5 : 1
A’s salary = Rs. 1,200
Remaining profit = (1800-1200) = Rs. 600
6 units = Rs. 600
1 units = Rs. 100
share of A = 100 × 5 = 500
share of B = 100 × 5 = 500
∴ Total share of A = (1200+500) = Rs. 1700
Total share of B = Rs. 100