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Three business partners Abila,Bwire and Chirchir contributed Ksh 120,000, Ksh 180,000 and Ksh 240,000 respectively, to boast their business.
Class: Form 1
Subject: Mathematics
Topic: Rates, Ratios, Proportions and Percentages
Lesson Summary
Three business partners Abila, Bwire and Chirchir contributed ksh 120,000,ksh 180,000 and ksh 240,000 respectively,to boast their business.They agreed to put 20% of the profit accrued back into the business and to use 35% of the profit for running the business(official operations).The remainder was to be shared among the business partners in the ratio of their contribution.At the end of the year,a gross profit of ksh.225,000 was realized.
a)Calculate the amount:
i)Put back into the business.
ii)Used for official operations.
b)Calculate the amount of profit each partner got.
c)If the amount put back into the business was added to individuals’s shares proportionately to their initial contribution,find the amount of chirchir’s new shares.
Text Answer
a)Calculate the amount:
i)Put back into the business.
20% x 225000 = sh.45000
ii)Used for official operations.
35% x 225000 = sh.78750
b)Calculate the amount of profit each partner got.
225,000 – 45000-78750 = 101250(to be shared in the ratio of the contribution)
Abila’s share =29x 101,250 = 22500
Bwire’s share =39x 101,250 = 33750
Chirchir’s share =49x 101,250 = 45000
c)If the amount put back into the business was added to individuals’s shares proportionately to their initial contribution,find the amount of chirchir’s new shares.
Chirchir’s share from the amount to be put back into the business
=49x 45000 = 20000
Chirchir’s new share = 20000 +45000 = sh 65000
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