Question

Nitin and Mohit started a business by investing Rs. 50,000 each initially. After 4 months, Nitin has to withdraw Rs. 10,000. If the total profit at the end of the year was Rs. 20,000, what is the share of Nitin?
1. 10000
2. 10714
3. 9286
4. 8489

Answer 1

Correct Answer - Option 3 : 9286

Calculations:

Initial investment by Nitin = Rs.50000

Initial investment by Mohit = Rs.50000

Time period of investment by Mohit = 12 months

Time period of investment of Rs.50000 by Nitin = 4 months

Reduced sum of investment by Nitin = 50000 – 10000 = Rs.40000

Time period of investment of Rs.50000 by Nitin = 4 months

Time period of investment of Rs.40000 by Nitin = 12 – 4 = 8

Hence, the ratio of shares in the profit by Nitin and Mohit is obtained as:

[(50000 × 4) + (40000 × 8)] ∶ 50000 × 12 = 13 ∶ 15

Nitin's share in profit = (13/28) × 20000 ≈ Rs.9286 

∴ Share of Nitin is Rs. 9286