📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Sumit started a company with an initial investment.

    After 3 months, Tarun joined him with Rs. 1000 more than Sumit. If their profit shares after one year are in the ratio 7:9, what was Sumit’s investment?
    A Rs.1400 Correct Answer Incorrect Answer
    B Rs.1320 Correct Answer Incorrect Answer
    C Rs.1210 Correct Answer Incorrect Answer
    D Rs.1350 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let Sumit’s investment be Rs. 'Y'

    So, Tarun’s investment = Rs. (Y + 1000)

    Profit ratio = (Y × 12) : {(Y + 1000) × 9}

    ATQ,

    (Y × 12) ÷ {(Y + 1000) × 9} = 7/9

    Or, 12Y × 9 = 7 × (9Y + 9000)

    Or, 108Y = 63Y + 63,000

    So, 45Y = 63,000

    ∴ Y = 63,000 ÷ 45 = Rs. 1400

    Therefore, Sumit’s initial investment = Rs. 1400

    Practice Next
    More Partnership Questions
    ask-question