Question

A starts a business with the investment of  Rs.10,000. After 4 months, B invests Rs. 20,000 and A also doubles his investment. If after one year, the total profit is Rs.45000, then find the share of A in the total profit.
1. Rs. 25,000
2. Rs. 20,000
3. Rs. 30,000
4. Rs. 15,000
5. Rs. 23,000

Answer 1

Correct Answer - Option 1 : Rs. 25,000

Given:

A invest Rs. 10,000 for 4 months and Rs. (2 × 10,000) for 8 months.

B invest Rs. 20,000 for 8 months.

Total profit after 1 year is Rs. 45,000.

Concept:

Ratio of profit = Amount invested by one partner × time period of investment ∶ Amount invested by other partner × time period of investment

Calculation:

Ratio of share of profit = A ∶ B

⇒ Amount invested by A × time period of investment ∶ Amount invested by B × time period of investment

⇒ (10,000 × 4 + 20,000 × 8) ∶ (20,000 × 8)

⇒ (40,000 + 1,60,000) ∶ (1,60,000)

⇒ 2,00,000 ∶ 1,60,000

⇒ 5 ∶ 4

A’s share in total profit = 5 × (45,000/9)

⇒ 5 × 5,000

⇒ 25,000

∴ The share of A in the total profit is Rs. 25,000.