Question
X and Y started a business with capital investments of
Rs.5000 and Rs.4000 respectively. After 6 months, X left the business. Y increased his capital by 50% and Z joined with Rs.7000. If the total annual profit was Rs.18300, what will be Z's share of the profit?Solution
ATQ,
Profit ratio of X, Y and Z =
= (5000 × 6) : [(4000 × 6) + (6000 × 6)] : (7000 × 6)
= 30000 : (24000 + 36000) : 42000
= 30000 : 60000 : 42000
= 5 : 10 : 7
Z’s profit share =
= 18300 × 7 / (5 + 10 + 7)
= 18300 × 7 / 22
= Rs.5825
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