Question:
A and B are partners in a business. A invested ₹42,000 for 10 months and B invested ₹35,000 for 8 months. Out of a profit of ₹31,570, B's share is:
A and B are partners in a business. A invested ₹42,000 for 10 months and B invested ₹35,000 for 8 months. Out of a profit of ₹31,570, B's share is:
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When dividing profits in a partnership, always calculate the total investment (investment amount × time) and use the ratio of investments to determine the share of profit.
Updated On: Feb 16, 2025
- ₹ 12,648
- ₹ 12,682
- ₹ 12,684
- ₹ 12,628
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The Correct Option is D
Solution and Explanation
Step 1: Calculate the ratio of investments.
A's investment = ₹ 42,000 for 10 months = ₹ 420,000.
B's investment = ₹ 35,000 for 8 months = ₹ 280,000.
Ratio of investments A:B = \( \frac{420000}{280000} = \frac{3}{2} \).
Step 2: Calculate B's share of profit.
Total ratio = 3 + 2 = 5.
B's share = \( \frac{2}{5} \times ₹ 31,570 \) = \( \frac{2 \times 31570}{5} \) = ₹ 12,628.
A's investment = ₹ 42,000 for 10 months = ₹ 420,000.
B's investment = ₹ 35,000 for 8 months = ₹ 280,000.
Ratio of investments A:B = \( \frac{420000}{280000} = \frac{3}{2} \).
Step 2: Calculate B's share of profit.
Total ratio = 3 + 2 = 5.
B's share = \( \frac{2}{5} \times ₹ 31,570 \) = \( \frac{2 \times 31570}{5} \) = ₹ 12,628.
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