💼 Salary, Charity & Funds
2 exam question types, fully solvedSometimes a slice of the profit is taken out before anyone's capital share is worked out — a salary for the partner who actually runs the business, or money set aside for charity or a reserve fund. That slice comes off the top first.
Always a two-stage payout:
Stage 1 — remove the salary / charity / fund. Deduction .
Stage 2 — divide what remains, , among the partners in the capital ratio.
• A working partner who is also an investor gets both: the salary AND a normal capital share of the remainder. Add the two.
• A charity / reserve is the same idea, but the deduction leaves the business — no one gets it back.
• Working backwards from a share: a partner's share equals their ratio fraction of the remainder, e.g. . Solve that single equation for the total .
The trap: never split the whole profit by the ratio. Deduct first — that is exactly the mistake the options are designed to catch.
A working partner takes 20% of a ₹50,000 profit as salary first. Salary = = ₹.
Q1A working partner takes 10% of the profit as salary first. The total profit is ₹20,000. The salary is:
Q2A (working, 20%) and B invest equally. The profit is ₹50,000; the rest after A's salary is split equally. A's total share is:
Q310% of a ₹10,000 profit goes to charity before the split. The amount shared among the partners is:
Real exam questions — Salary, Charity & Funds
2 question types · 8 solved examples from real SSC papersSalary, charity or a fund comes OFF THE TOP first. Whatever is left is divided in the capital ratio — never split the whole profit by ratio.
A working partner who is also an investor gets BOTH: the salary plus a normal capital share of the remainder. The standard slip is splitting the whole profit by ratio and forgetting the salary deduction.
A (a working partner who gets 20% of profit), B and C invest ₹50,000, ₹40,000 and ₹60,000. The profit is ₹75,000. Find B's share.
A (working partner, 25% allowance), B and C each invest ₹30,000. The total profit is ₹60,000. Find B's share.
A and B each invest ₹50,000. A is a working partner and takes 25% of the profit; the rest is split equally. The total profit is ₹48,000. A gets:
A (working) invests ₹20,000 and B invests ₹30,000. A gets a 10% bonus on the profit; the rest is split by capital. The profit is ₹25,000. A's total share is: