Two partners A and B invest in the ratio 3 : 2. If 5% of the total profit is donated to charity and A's actual share after donation is ₹ 855, what is the total profit before charity?

Difficulty: Easy

Correct Answer: ₹ 1,500

Explanation:


Introduction / Context:
Partnership questions frequently include a charity deduction before the remaining amount is shared by ratio. You must apply the donation first and then split the remainder according to the investment ratio.



Given Data / Assumptions:

  • A : B = 3 : 2.
  • Charity = 5% of total profit P.
  • A's received amount after charity = ₹ 855.



Concept / Approach:
After donating 5%, the distributable amount is 95% of P (i.e., 0.95 * P). A's share is 3/5 of the distributable amount because A has 3 parts out of total 3 + 2 = 5 parts.



Step-by-Step Solution:
Distributable = 0.95 * P. A's amount = (3/5) * 0.95 * P = 0.57 * P. Given 0.57 * P = 855 ⇒ P = 855 / 0.57 = ₹ 1,500.



Verification / Alternative check:
5% of 1,500 is 75. Remaining 1,425 shared 3:2 ⇒ A gets 855 and B gets 570. Matches the given condition.



Why Other Options Are Wrong:
Values other than ₹ 1,500 do not produce A's net share of ₹ 855 after charity when the 3 : 2 split is applied.



Common Pitfalls:
Splitting the entire profit without deducting charity or taking 3/5 of the total instead of 3/5 of the remaining 95%.



Final Answer:
₹ 1,500

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