Question
H and V commenced a business with investments of Rs.
(p+20000) and Rs. (p-20000), respectively. In the 8th month, H withdrew Rs. 40000 from the business. Given that V's share of the first year's profit, amounting to Rs. 17400, was Rs. 7200, determine the value of 'p'.Solution
Profit sharing ratio between H and V at the end of 1st year, => [(p+20000) x 8 + (p+20000 – 40000) x 4] : [(p-20000) x 12] => (3p + 20000) : (3p – 60000) According to the question, => [(3p – 60000)/{(3p+20000)+(3p-60000)}] x 17400 = 7200 => [(3p – 60000)/(6p – 40000)] x 17400 = 7200 On solving p we get, => p = Rs. 84000
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