Question

A, B and C are three partners. They all together invested Rs 42,000 in a business. At the end of the year, A received Rs 377.50, B Rs 1085 and C Rs 637.50 as profit. The difference between the investments of B and C is:

• A. Rs 8,950
• B. Rs 671.25
• C. Rs 895
• D. Rs 1,118.75

Hint:

When dividing profits in a partnership, the ratio of profits is equal to the ratio of the partners' investments.

Answer 1

The Correct Option is A

To solve this problem, we need to determine the individual investments of partners A, B, and C based on the profits they received. Here's a step-by-step solution: 1. Total Investment and Profits:
Total investment by A, B, and C: ₹ 42,000
Profits received:
A: ₹ 377.50
B: ₹ 1,085
C: ₹ 637.50
2. Calculate Total Profit: \[ \text{Total Profit} = 377.50 + 1,085 + 637.50 = ₹ 2,100 \] 3. Determine Profit Ratios: \begin{itemize} \item The profit ratio will be the same as the investment ratio. \item Profit ratio of A : B : C = 377.50 : 1,085 : 637.50 \end{itemize} 4. Simplify the Ratio:
Divide each profit by 12.5 to simplify:
A: \( \frac{377.50}{12.5} = 30.2 \)
B: \( \frac{1,085}{12.5} = 86.8 \)
C: \( \frac{637.50}{12.5} = 51 \)
Simplified ratio: 30.2 : 86.8 : 51
5. Calculate Individual Investments: \begin{itemize} \item Let the total parts be \( 30.2 + 86.8 + 51 = 168 \) \item Investment of B: \[ \text{B's Investment} = \left( \frac{86.8}{168} \right) \times 42,000 = ₹ 21,700 \] \item Investment of C: \[ \text{C's Investment} = \left( \frac{51}{168} \right) \times 42,000 = ₹ 12,750 \] \end{itemize} 6. Find the Difference Between B and C's Investments: \[ \text{Difference} = 21,700 - 12,750 = ₹ 8,950 \] Therefore, the difference between the investments of B and C is ₹ 8,950. The correct option is: 8,950