Question

Raheel and Farhan started a business by investing 70,000 and 95,000 respectively. Raheel was a silent partner while Farhhan run the business by taking the fixed salary of rs.8000 pr month. At the end of the year they earned a profif 44,000. Find the share of each person.

Answer 1

The business is worth 70000+95000=Rs165000. So Raheel owns 70000/165000=14/33 of the business and Farhan 95000/165000=19/33. By the end of the year Farhan has picked up 12*8000=Rs96000 in salary. But the business has made 44000 so the business is now worth 165000-96000+44000=Rs113000.

Assuming the share is based on their original investments, Raheel owns 14/33 and Farhan owns 19/33 of the business value. Raheel's share is Rs47939.39 and Farhan's share is Rs65060.61.