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What is the difference in the share of profit between P and Q in joint business the end of one year
(i) P invested Rs. 80,000 and withdrew Rs. 20,000 after 6 months.
(ii) Q joined four months after the start of business.
(iii) Q's amount was `80%` of P's amount during the last six months

A

(i) and (ii) only

B

(ii) and (iii) only

C

The sum earned simple interest in 10 years.

D

Even not with all (i), (ii) and (iii) together

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AI Generated Solution

The correct Answer is:
To solve the problem of finding the difference in the share of profit between P and Q in a joint business at the end of one year, we will follow these steps: ### Step 1: Calculate P's Investment Duration and Effective Capital P invested Rs. 80,000 and withdrew Rs. 20,000 after 6 months. - For the first 6 months, P's investment was Rs. 80,000. - For the next 6 months, P's investment was Rs. 60,000 (after withdrawal). **Effective Capital Calculation for P:** - For the first 6 months: \[ \text{Investment} = 80,000 \times 6 = 480,000 \] - For the next 6 months: \[ \text{Investment} = 60,000 \times 6 = 360,000 \] - Total effective capital for P: \[ \text{Total} = 480,000 + 360,000 = 840,000 \] ### Step 2: Calculate Q's Investment Duration and Effective Capital Q joined 4 months after the start of the business, meaning Q was in the business for 8 months. - During the last 6 months, Q's amount was 80% of P's amount. **P's amount during the last 6 months:** - P had Rs. 60,000 for the last 6 months. - Q's amount: \[ Q's \text{ amount} = 80\% \text{ of } 60,000 = 0.8 \times 60,000 = 48,000 \] **Effective Capital Calculation for Q:** - For the last 8 months: \[ \text{Investment} = 48,000 \times 8 = 384,000 \] ### Step 3: Calculate Total Effective Capital for Both - Total effective capital for P = Rs. 840,000 - Total effective capital for Q = Rs. 384,000 ### Step 4: Calculate the Profit Share Ratio To find the profit share ratio, we need to divide the total effective capital of each partner by the total effective capital combined. **Total Effective Capital:** \[ \text{Total} = 840,000 + 384,000 = 1,224,000 \] **Profit Share Ratio:** - P's share: \[ \text{P's share} = \frac{840,000}{1,224,000} = \frac{840}{1224} = \frac{70}{102} = \frac{35}{51} \] - Q's share: \[ \text{Q's share} = \frac{384,000}{1,224,000} = \frac{384}{1224} = \frac{32}{102} = \frac{16}{51} \] ### Step 5: Calculate the Difference in Profit Shares To find the difference in profit shares, we can calculate: \[ \text{Difference} = P's \text{ share} - Q's \text{ share} = \frac{35}{51} - \frac{16}{51} = \frac{19}{51} \] ### Final Answer The difference in the share of profit between P and Q at the end of one year is: \[ \text{Difference} = \frac{19}{51} \text{ of the total profit} \]
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