Question

Rekha, Sandip and Milan formed a partnership to conduct a business. They invested Rs 400,000 in the ratio 3:4:9. At the end of the first year, their gross profit wash Rs 247,000 and their expenses were Rs 33,200. If each of them received 10% interest on their investment and the net profit (remaining profit) were shared equally, what was the total share of each partner.

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Answer 1

Rekha's share is Rs 65,766.67, Sandip's share is Rs 68,266.67, and Milan's share is Rs 80,266.67.

Step-by-step explanation:

To calculate the total share of each partner, we can follow these steps:

1. Find the total investment by adding the ratios: 3+4+9 = 16
2. Divide the total investment by the sum of the ratios: 400,000/16 = 25,000
3. Multiply each partner's ratio by the investment per ratio: Rekha: 3 * 25,000 = 75,000, Sandip: 4 * 25,000 = 100,000, Milan: 9 * 25,000 = 225,000
4. Calculate the interest earned by each partner: Rekha: 75,000 * 0.10 = 7,500, Sandip: 100,000 * 0.10 = 10,000, Milan: 225,000 * 0.10 = 22,500
5. Calculate the remaining profit after deducting expenses and interest earned: Gross profit - expenses - sum of interest = 247,000 - 33,200 - (7,500 + 10,000 + 22,500) = 174,800
6. Share the remaining profit equally among the partners: 174,800/3 = 58,266.67
7. Add each partner's share of the remaining profit to their interest earned: Rekha:
8. 7,500 + 58,266.67 = 65,766.67, Sandip: 10,000 + 58,266.67 = 68,266.67, Milan: 22,500 + 58,266.67 = 80,266.67

Therefore, the total share of each partner would be: Rekha: Rs 65,766.67, Sandip: Rs 68,266.67, Milan: Rs 80,266.67