Question

A started business in 2010 with Rs. 75,000. In 2011, B joined him with Rs. 45,000, in year 2012 they both invested an additional amount of Rs. 25,000 each at the end of 3 years they earned a profit of Rs. 43800, Find A’s share in the profit?
1. 40,000
2. 45,000
3. 30,000
4. 50,000
5. 16,000

Answer 1

Correct Answer - Option 3 : 30,000

Given∶

In year 2010 A invests Rs. 75000

In year 2011 A’s capital value is same for the whole year = Rs. 75000

In year 2012 A invests an additional amount of Rs. 25000 so total amount invested is Rs. 100000

In case of B; B joined in year 2011 with Rs. 45000

In year 2012 he also invests an additional amount of Rs. 25000 so total amount invested = is Rs. 70000

Formula used∶

(Profit)_A ∶ (Profit)_B

(share × Time)_A ∶ (share × Time)_B

Calculations∶      

(Profit)_A ∶ (Profit)_B

[75000 × 12 + 75000 × 12 + (75000 + 25000) × 12] ∶ [45000 × 12 + (25000 + 45000) ×12]

 (1800 + 1200) ∶ (540 + 840)

 50 ∶ 23

A’s share = 50 / (50 + 23) × 43800

⇒ Rs. 30,000