Shortcut Trick
Total distributed profit = Total profit × 90%.
A's share = Total profit × (90 / 100) × [9 / (9 + 5)].
29840 = Total profit × (9 / 10) × (9 / 14).
Total profit = 29840 × (140 / 81) = 4177600 / 81 = 51575.30...
∴ The correct answer is Rs. 51,575.
Alternate Method
Given:
Investment ratio of A and B = 9 : 5
Percentage of profit going to charity = 10%
A's profit share = Rs. 29,840
Formula Used:
Profit ratio = Investment ratio (when the time period is identical)
Calculations:
⇒ Let the total profit be P.
⇒ Profit distributed between A and B = P − 10% of P = 90% of P = 0.9P.
⇒ Investment ratio of A and B = 9 : 5
⇒ Total ratio parts = 9 + 5 = 14 parts.
⇒ A's profit share = (9 / 14) of the remaining profit
⇒ 29840 = (9 / 14) × 0.9P
⇒ 29840 = (8.1 / 14) × P
⇒ P = (29840 × 14) / 8.1
⇒ P = 417760 / 8.1 = 4177600 / 81
⇒ P = 51575.308...
⇒ Rounding to the nearest integer, Total Profit ≈ Rs. 51,575
∴ The correct answer is Rs. 51,575.
Additional Information
Sleeping Partner
A partner who only invests money but does not take part in the management of the business is known as a sleeping partner. Active partners receive a fixed salary or a certain percentage of the profit for managing the business before the remaining profit is distributed among all partners.
Compound Partnership
When investments are made for different time periods, it is called a compound partnership. The profit share ratio is the product of capital invested and the time period of investment (P1 : P2 = C1×T1 : C2×T2).
Joining Mid-way
If a partner joins x months after the start of a financial year, their investment time period for that year is (12 − x) months, which must be multiplied by their capital to determine their final profit share ratio compared to the primary investors.