New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    ‘A’ and ‘B’ started a business by investing Rs.

    7,000 and Rs. 8,000, respectively. 6 months later, ‘C’ joined them with an investment equal to average of initial investment made by ‘A’ and ‘B’ together. If at the end of the year, B’s profit share out of the total profit was Rs. 40,000, then find the profit share of ‘C’.
    A Rs. 15750 Correct Answer Incorrect Answer
    B Rs. 22000 Correct Answer Incorrect Answer
    C Rs. 33000 Correct Answer Incorrect Answer
    D Rs. 18750 Correct Answer Incorrect Answer

    Solution

    ATQ; Amount invested by ‘C’ = [(7000 + 8000)/2] = Rs. 7,500 Profit shares of ’A’, ‘B’ and ‘C’, respectively at the end of the year = [(7000 × 12): (8000 × 12):(7500 × 6)] = 28:32:15 Let the total profit received by ‘A’, B’ and ‘C’ at the end of the year be Rs. ‘P’ Profit share of ‘B’ = 40000 = (32/75) × P => P = 40000 × (75/32) = 93750 Profit share of ‘C’ = 93750 × (15/75) = Rs. 18750

    Practice Next