Question
P, Q, and R invested ₹1,00,000, ₹1,50,000, and
₹2,00,000, respectively, to start a business. At the end of the year, the total profit was ₹90,000. If P withdrew ₹20,000 after 4 months, what is P’s share of the profit?Solution
P's capital for the first 4 months = ₹1,00,000 P's capital for the next 8 months = ₹80,000 Q's and R’s capitals remain constant. Effective capital of P = (1,00,000 × 4) + (80,000 × 8) = ₹8,00,000 Effective capital of Q = 1,50,000 × 12 = ₹18,00,000 Effective capital of R = 2,00,000 × 12 = ₹24,00,000 Ratio of capitals = 8,00,000 : 18,00,000 : 24,00,000 = 2 : 4.5 : 6 P’s share of profit = (2/12.5) × 90,000 = ₹14,400 Correct Option: b)
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