Question

    A and B start a business with investments of Rs. 60,000

    and Rs. 80,000 respectively. After 6 months, A withdraws one-third of his capital, while B adds Rs. 20,000 more. If the total profit at the end of the year is Rs. 39,200, what is B’s share in the profit?
    A 20,200 Correct Answer Incorrect Answer
    B 25,700 Correct Answer Incorrect Answer
    C 25,200 Correct Answer Incorrect Answer
    D 45,270 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ, A: First 6 months: 60,000 Next 6 months: 60,000 × (2/3) = 40,000 Capital–months of A = 60,000 × 6 + 40,000 × 6 = 3,60,000 + 2,40,000 = 6,00,000 B: First 6 months: 80,000 Next 6 months: 1,00,000 Capital–months of B = 80,000 × 6 + 1,00,000 × 6 = 4,80,000 + 6,00,000 = 10,80,000 Ratio A : B = 6,00,000 : 10,80,000 = 5 : 9 Total profit = 39,200 B’s share = (9 / (5 + 9)) × 39,200 = (9/14) × 39,200 = 9 × 2,800 = 25,200

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