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Capital investments of two partners, A and B, are different. A gets 20% of the profit as bonus, and the rest of the profit is distributed in the propo
Question

Capital investments of two partners, A and B, are different. A gets 20% of the profit as bonus, and the rest of the profit is distributed in the proportion of their investment. If the entire profit were divided in proportion to their capital investment, B would have got Rs. 25,000 more than he gets now. What amount does B get now?

A.

2.00 lakh

B.

1.50 lakh

C.

1.25 lakh

D.

1.00 lakh

Correct option is D

Given:

A gets 20% of the total profit as bonus.
Remaining 80% is distributed between A and B as per their investment ratio.
If the entire profit was divided in the ratio of investments, B would have got Rs. 25,000 more.
We are to find B's actual current share.

Solution:
Let total profit = Rs. x
Let capital ratio of A and B = a : b
Then,
B’s ideal share if full profit is divided in capital ratio:ba+b×xB’s current share (after A takes 20% as bonus):ba+b×0.8xDifference between ideal and current share:(ba+b×x)(ba+b×0.8x)=25,000ba+b×x×(10.8)=25,000ba+b×x×0.2=25,000=>ba+b×x=1,25,000(B’s ideal share)B’s current share:0.8×1,25,000=1,00,000\begin{aligned}&\text{B's ideal share if full profit is divided in capital ratio:} \\&\quad \frac{b}{a + b} \times x \\[5pt]&\text{B's current share (after A takes 20\% as bonus):} \\&\quad \frac{b}{a + b} \times 0.8x \\[5pt]&\text{Difference between ideal and current share:} \\&\quad \left(\frac{b}{a + b} \times x\right) - \left(\frac{b}{a + b} \times 0.8x\right) = 25{,}000 \\[5pt]&\quad \frac{b}{a + b} \times x \times (1 - 0.8) = 25{,}000 \\[5pt]&\quad \frac{b}{a + b} \times x \times 0.2 = 25{,}000 \\[5pt]&\Rightarrow \frac{b}{a + b} \times x = 1{,}25{,}000 \quad \text{(B's ideal share)} \\[5pt]&\text{B's current share:} \quad 0.8 \times 1{,}25{,}000 = 1{,}00{,}000\end{aligned}​​


Final Answer: (d) 1.00 lakh

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