Question

A invests Rs. 100000 in a business. Four months later B joins with an investment of Rs. 50000. 2 months after B joins, C joins with Rs. 150000 investment. At the end of the year, the profit was Rs. 50000. What is B's share in the profit?
1. Rs. 24000
2. Rs. 8000
3. Rs. 18000
4. Rs. 10000

Answer 1

Correct Answer - Option 2 : Rs. 8000

Concept Used:

Ratio of profit shares = Ratio of their investment

Calculation:

Total investment of A = 100000 × 12 = Rs.1200000

Total investment of B = 50000 × 8 = Rs.400000

Total investment of C = 150000 × 6 = Rs.900000

Ratio of their profit shares =

= 1200000 : 400000 : 900000

= 12 : 4 : 9

B's profit share = 4/25 × 50000 = Rs.8000

∴ B's share in the profit is Rs. 8000.