Practice mode Partnership

A firm’s annual profit is Rs. 1,20,000. A gets 20% for managing the firm and the rest is divided among A, B and C in the ratio 3 : 2 : 1. What is A’s total income?

Correct answer D. Rs. 72,000

Explanation

Management share = 20% of 1,20,000 = Rs. 24,000. A's part of the remaining 96,000 = 96,000 × 3/6 = 48,000. Total = Rs. 72,000.

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