Question Details

M and N contribute to a business investment in the ratio 2:7. They earn a profit of ₹81,000. M is a working partner and receives 15% of the profit extra. What is M's total share?

Options

A

₹24,000

B

₹27,450

C

₹30,000

D

₹33,000

Show Answer

Correct Answer :

Option B

₹27,450

Solution :

The correct option is ₹27,450.


Let's solve the problem step-by-step to find M's total share from the business profit.


Step 1: Calculate M's extra allowance for being a working partner.

The total profit earned by the business is ₹81,000.

As a working partner, M receives 15% of the total profit extra before the remaining profit is shared.

Extra amount for M = 15 % of 81,000

Extra amount for M = 15 100 × 81,000 = 15 × 810 = 12,150


Step 2: Calculate the remaining profit to be distributed based on investment ratio.

Remaining Profit = Total Profit - Extra amount given to M

Remaining Profit = 81,000 - 12,150 = 68,850


Step 3: Calculate M's share from the remaining profit.

M and N contributed to the business in the ratio 2 : 7.

Total ratio parts = 2 + 7 = 9 parts.

M's share of the remaining profit is 2 parts out of 9:

M's profit share = 2 9 × 68,850

M's profit share = 2 × 7,650 = 15,300


Step 4: Calculate M's total share.

M's total share consists of the extra allowance plus M's share from the remaining profit:

M's total share = Extra Allowance + M's profit share

M's total share = 12,150 + 15,300 = 27,450


Thus, M's total share is ₹27,450.

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