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Abhishek started a business investing '5...

Abhishek started a business investing '50,000. After one year he invested another '30,000 and Sudin also joined him with a capital of '70,000. If the profit earned in three years from the starting of business was '87,500, then find the share of Sudin in the profit.

A

`'37,500`

B

`'35,000`

C

`'38,281`

D

`'52,500`

Text Solution

AI Generated Solution

The correct Answer is:
To find Sudin's share in the profit, we need to calculate the effective capital contribution of both Abhishek and Sudin over the 3 years. ### Step-by-Step Solution: 1. **Calculate Abhishek's Total Investment:** - Abhishek initially invested ₹50,000 for 3 years. - After 1 year, he invested an additional ₹30,000, which means this amount was invested for 2 years. - Total investment by Abhishek: - For the first ₹50,000: \[ 50,000 \times 3 = 150,000 \] - For the additional ₹30,000: \[ 30,000 \times 2 = 60,000 \] - Total contribution of Abhishek: \[ 150,000 + 60,000 = 210,000 \] 2. **Calculate Sudin's Total Investment:** - Sudin joined the business with ₹70,000, which was invested for 2 years. - Total investment by Sudin: \[ 70,000 \times 2 = 140,000 \] 3. **Calculate Total Investment:** - Total investment from both partners: \[ 210,000 + 140,000 = 350,000 \] 4. **Calculate the Profit Sharing Ratio:** - The profit sharing ratio is based on the effective capital contributions: - Abhishek's share: \[ \text{Abhishek's share} = 210,000 \] - Sudin's share: \[ \text{Sudin's share} = 140,000 \] - Therefore, the ratio of their investments is: \[ \text{Ratio} = \frac{210,000}{140,000} = \frac{21}{14} = \frac{3}{2} \] 5. **Calculate Sudin's Share of the Profit:** - Total profit earned is ₹87,500. - Total parts in the ratio (3 + 2 = 5). - Sudin's share in the profit: \[ \text{Sudin's share} = \frac{2}{5} \times 87,500 = 35,000 \] ### Final Answer: Sudin's share in the profit is ₹35,000.
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