Practice mode Partnership

A is a sleeping partner with Rs. 60,000 and B is a working partner with Rs. 40,000. B gets 5% of the profit for managing, and the rest is shared in the capital ratio. Out of Rs. 50,000 profit, what is B’s total?

Correct answer C. Rs. 21,500

Explanation

Management fee = 5% of 50,000 = Rs. 2,500. Remaining 47,500 × 40/100 = Rs. 19,000. B's total = Rs. 21,500.

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