Question

Two partners P and Q invested Rs. 35,000 and Rs. 42,000 respectively in a business. Q left the business with his money after 9 months. At the end of the first year, they earned a profit of Rs. 11,400. What is Q's share?
1. Rs. 4,500
2. Rs. 5,700
3. Rs. 5,400
4. Rs. 6,300

Answer 1

Correct Answer - Option 3 : Rs. 5,400

Given:

P's investment = Rs. 35,000

Q's investment = Rs. 42,000

Total profit = Rs. 11,400

Concept used:

Divide the total profit according to investment ratio.

Calculations:

The total investment of P in 12 months = 35000 × 12

The total investment of Q in 9 months = 42000 × 9

The ratio of equivalent capitals of P and Q = (35000 × 12) ∶ (42000 × 9) = 10 ∶ 9

Thus Q’s share = 11400 × 9/19 = Rs. 5,400

∴ The share of Q is Rs. 5,400.