A & B took a contract, investing, 8,000 and 10,000 respectively. They earned a profit 9000 in the business, what was the share of A?

Appeared in: BSF Staff Nurse - 2015

Explanation

In a partnership, profits are divided in proportion to the capital invested by each partner.
The investment ratio for A and B is Rs. 8,000 to Rs. 10,000, which simplifies to 4:5.
The total profit of Rs. 9,000 is divided into 9 equal parts (4 + 5).
A's share corresponds to 4 of these parts.
Calculation: (4 / 9) * 9,000 = Rs. 4,000.

Option B: This amount does not correspond to the 4:5 investment ratio. It seems to be an arbitrary value without a mathematical basis in the context of the problem.
Option C: This value is significantly higher than A's proportional share. A invested less than B, so A's profit share must be less than half of the total profit.
Option D: This is the profit share for partner B, not partner A. B's share is calculated as (5 / 9) * 9,000 = Rs. 5,000.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Profit Sharing in a Partnership as background academic context rather than a clinical decision trigger.
While this is a mathematics question, understanding basic financial principles is a vital life skill for all professionals, including nurses.
This knowledge is practical for nurses considering private practice, entering a business partnership for a clinic, or managing personal investments.
Financial literacy helps in making informed decisions, ensuring fair compensation and sustainable practice.

How to Approach the Question

First, identify the key financial figures: A's investment (Rs. 8,000), B's investment (Rs. 10,000), and the total profit (Rs. 9,000).
The core principle is that profit is shared in the same ratio as the investments. Set up the investment ratio: A : B.
Calculate the ratio: 8,000 : 10,000. Simplify this by dividing both numbers by their greatest common divisor (2,000) to get the simplest form, which is 4 : 5.
Sum the parts of the ratio (4 + 5 = 9). This total represents the number of 'shares' the profit will be divided into.
Calculate the value of one 'share' by dividing the total profit by the sum of the ratio parts (Rs. 9,000 / 9 = Rs. 1,000).
Finally, calculate A's profit by multiplying A's ratio part (4) by the value of one share (Rs. 1,000), which equals Rs. 4,000.

Concept Tested & Keywords

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