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A started a business with an investment ...

A started a business with an investment of 28,000. After 5 months from the start of the business B and C joined 'With 24,000 and 32,000 respectively and A withdrew 8000 from the business. If the difference between A's share and B's share in the annual profit is Rs. 2,400. then what was the annual profit received ?

A

15600

B

14400

C

14040

D

15360

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will determine the annual profit based on the investments made by A, B, and C, and the given conditions. ### Step 1: Calculate the effective capital contribution of each partner. - **A's investment:** A invested Rs 28,000 for 5 months. - Effective capital = 28,000 * 5 = Rs 140,000 (capital months) - **A's remaining investment:** After 5 months, A withdrew Rs 8,000, leaving Rs 20,000 to be invested for the remaining 7 months. - Effective capital after withdrawal = 20,000 * 7 = Rs 140,000 (capital months) - **B's investment:** B joined after 5 months with Rs 24,000 for 7 months. - Effective capital = 24,000 * 7 = Rs 168,000 (capital months) - **C's investment:** C joined with Rs 32,000 for 7 months. - Effective capital = 32,000 * 7 = Rs 224,000 (capital months) ### Step 2: Calculate the total effective capital contributions. Now, we sum up the effective capital contributions: - Total effective capital for A = Rs 140,000 + Rs 140,000 = Rs 280,000 - Total effective capital for B = Rs 168,000 - Total effective capital for C = Rs 224,000 ### Step 3: Find the profit-sharing ratio. The profit-sharing ratio of A, B, and C can be calculated as follows: - A's share = 280,000 - B's share = 168,000 - C's share = 224,000 To simplify the ratio, we can divide each amount by 56,000 (the GCD): - A : B : C = 280,000 / 56,000 : 168,000 / 56,000 : 224,000 / 56,000 - A : B : C = 5 : 3 : 4 ### Step 4: Set up the equation based on the profit difference. Let the total annual profit be X. According to the problem, the difference between A's share and B's share is Rs 2,400. - A's share = (5/12) * X - B's share = (3/12) * X The difference can be expressed as: \[ \frac{5}{12}X - \frac{3}{12}X = 2400 \] ### Step 5: Solve for X. Simplifying the left side: \[ \frac{2}{12}X = 2400 \] This simplifies to: \[ \frac{1}{6}X = 2400 \] Now, multiply both sides by 6: \[ X = 2400 * 6 \] \[ X = 14400 \] ### Conclusion The annual profit received is Rs 14,400.

To solve the problem step by step, we will determine the annual profit based on the investments made by A, B, and C, and the given conditions. ### Step 1: Calculate the effective capital contribution of each partner. - **A's investment:** A invested Rs 28,000 for 5 months. - Effective capital = 28,000 * 5 = Rs 140,000 (capital months) - **A's remaining investment:** After 5 months, A withdrew Rs 8,000, leaving Rs 20,000 to be invested for the remaining 7 months. ...
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