Three business partners, Bela Joan and Trinity contributed Kshs 112,000, Ksh, 128,000 and Ksh, 210,000 respectively to start a business. They agreed to share their profit as follows:
30% to be shared equally
30% to be shared in the ratio of their contributions
40% to be retained for running the business.
If at the end of the year, the business realized a profit of ksh 1.35 Million. Calculate:
a) The amount of money retained for the running of the business at the end of the year.
b) The difference between the amounts received by Trinity and Bela
c) Express Joan’s share as a percentage of the total amount of money shared between the three partners.
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a) The amount of money retained for the running of the business at the end of the year is 40% of the profit, which is (40/100) x 1,350,000 = Kshs 540,000.
b) To calculate the difference between the amounts received by Trinity and Bela, we need to calculate their individual shares according to their contributions.
Total contribution = 112,000 + 128,000 + 210,000 = Kshs 450,000
Trinity's share = (30/100) x 1,350,000 = Kshs 405,000
Bela's share = (30/100) x 1,350,000 = Kshs 405,000
The difference between Trinity and Bela's share is 405,000 - 405,000 = Kshs 0.
c) Joan's share is 30% of the profit and will be shared equally among the three partners. So, Joan's share is (30/100) x 1,350,000 = Kshs 405,000.
To express Joan's share as a percentage of the total amount shared between the three partners, we need to calculate the total amount shared.
Total amount shared = Trinity's share + Bela's share + Joan's share
= 405,000 + 405,000 + 405,000
= Kshs 1,215,000
Therefore, Joan's share as a percentage of the total amount shared is (405,000/1,215,000) x 100% = 33.33%.
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