Question

What is the share of P in the profit of Rs. 13,200 earned at the end of the year if P and Q started a business by investing Rs. 15,000 and Rs. 21,000 respectively?
1. Rs. 5,500
2. Rs. 4,500
3. Rs. 4,400
4. Rs. 5,600

Answer 1

Correct Answer - Option 1 : Rs. 5,500

Given:

P's investment = Rs. 15,000

Q's investment = Rs. 21,000

Total profit = Rs. 13,200

Concept used:

Divide the total profit according to investment ratio.

Calculations:

The total investment of P in 12 months = 15000 × 12

The total investment of Q in 12 months = 21000 × 12

The ratio of equivalent capitals of P and Q for 1 month = (15000 × 12) ∶ (21000 × 12) = 5 ∶ 7

Thus P’s share = 13200 × 5/12 = Rs. 5,500

∴ The share of P is Rs. 5,500.