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A starts a business with Rs. 60,000. Aft...

A starts a business with Rs. 60,000. After 3 months B joins the business with investment Rs. 45,000. At the end of the year share of A in the total profit is Rs.________. If they earned 40% profit on their total investment in the business at the end of the year, then which of the following will fill in the blank?

A

Rs. 15120

B

Rs. 20160

C

Rs. 25280

D

Rs. 26880

Text Solution

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The correct Answer is:
To solve the problem step by step, we need to calculate the share of A in the total profit earned at the end of the year. Here’s how to do it: ### Step 1: Calculate the total investment and profit A starts with Rs. 60,000 and B joins after 3 months with Rs. 45,000. The total profit earned at the end of the year is 40% of the total investment. **Total Investment Calculation:** - A's investment = Rs. 60,000 - B's investment = Rs. 45,000 - Total Investment = A's Investment + B's Investment = 60,000 + 45,000 = Rs. 1,05,000 **Total Profit Calculation:** - Total Profit = 40% of Total Investment = 0.40 × 1,05,000 = Rs. 42,000 ### Step 2: Calculate the time of investment for A and B - A invests for the entire year (12 months). - B invests for 9 months (since B joins after 3 months). ### Step 3: Calculate the effective investment months for A and B **Effective Investment Calculation:** - A's effective investment = 60,000 × 12 = Rs. 7,20,000 - B's effective investment = 45,000 × 9 = Rs. 4,05,000 ### Step 4: Calculate the ratio of investments **Ratio of Investments:** - The ratio of A's investment to B's investment = A's effective investment : B's effective investment - Ratio = 7,20,000 : 4,05,000 - To simplify, divide both by 15,000: - A's share = 48 - B's share = 27 - Thus, the ratio of A : B = 48 : 27, which simplifies to 16 : 9. ### Step 5: Calculate the share of profit for A **Total Parts of Profit:** - Total parts = 16 + 9 = 25 parts **Profit Share Calculation:** - A's share of profit = (A's parts / Total parts) × Total Profit - A's share of profit = (16 / 25) × 42,000 - A's share of profit = 16 × 1,680 = Rs. 26,880 ### Final Answer A's share in the total profit at the end of the year is Rs. **26,880**. ---
To solve the problem step by step, we need to calculate the share of A in the total profit earned at the end of the year. Here’s how to do it: ### Step 1: Calculate the total investment and profit A starts with Rs. 60,000 and B joins after 3 months with Rs. 45,000. The total profit earned at the end of the year is 40% of the total investment. **Total Investment Calculation:** - A's investment = Rs. 60,000 - B's investment = Rs. 45,000 ...
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