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M and N are partners in a firm out of which M is sleeping partner and N is working partner. M invests Rs. 1,80,000 and N invests Rs. 90,000. N receives 14.5% of profit for managing the business and the rest is shared between both in ratio of their investments. M’s share in the profit of Rs. 24000 is ?

  • A.Rs 10100 
  • B.Rs 11500
  • C.Rs 12520 
  • D.Rs 13680
  • E.None

Answer: D

Profit received by N as working partner = 14.5% of Rs. 24000 = Rs. 3480

Balance in profit = 24000 - 3480 = Rs. 20520 

Ratio of M and N =1,80,000 : 90,000 ==>2:1

Then M’s share 3 20520 2 ? Rs 13680

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