Question

A and B start a business together by investing Rs. 10,000 and Rs. 12,000. After 4 months A invests Rs. 5,000 more and B withdraws Rs. 4,000, after another 2 months C joins them with a capital of Rs. 15,000. If at the end of the year the difference of profit of A and B is Rs. 12,000, find the share of C (In Rs.).
1. 20,000
2. 25,000
3. 22,500
4. 25,500

Answer 1

Correct Answer - Option 3 : 22,500

Given:

Investment of A = 10,000 for 4 months and (10,000 + 5,000) for 8 months

Investment of B = 12,000 for 4 months and (12,000 – 4,000) for 8 months

Investment of C = 15,000 for 6 months (12 – 6)

Concept used:

Ratio of product of time and investment = Ratio of profit

Calculation:

Ratio of profit of A ∶ B ∶ C = 10000 × 4 + 15000 × 8 ∶ 12000 × 4 + 8000 × 8 ∶ 15000 × 6

⇒ 160 ∶ 112 ∶ 90

⇒ 80 ∶ 56 ∶ 45

Difference of profit of A and B = Rs. 12,000

⇒ 24R = 12000

⇒ 1R = 12000/24 = 500

⇒ 45R = 500 × 45 = 22500

∴ Share of C = Rs. 22,500