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Two businessmen Karega and Motema contributed sh 90 000 and sh 12 000 respectively in order to start a business. They agreed that 25% of the profit made at end of each year will be put back in the business. They also agreed that 40% of the profit will cover salaries and other expenses for that year. The remainder would then be shared between the partners in the ratio of their contributions.
At the end of the first year the business realised a gross profit of sh 181 300
(a) Calculate how each man received at the end of that year.
(b) At the end of the second year, the business realised the same gross profit as the previous year and the partners decided to dissolve the business and share everything. Determine how much money each man received.