A and B started a partnership. A invested Rs. 30,000 and B invested Rs. 70,000. At the end of the year, the total profit was Rs. 30,000.
Find the share of profit of A (in Rs).
Correct Answer :
9000
Solution :
The correct answer is 9000.
Step 1: Understand the principle of partnership and profit sharing
In a partnership business, if the investments are made for the same period of time, the total profit is divided among the partners in the ratio of their respective investments.
Step 2: Find the ratio of investments of A and B
Investment of A = Rs. 30,000
Investment of B = Rs. 70,000
Ratio of investments of A to B is:
Step 3: Calculate the share of profit for A
Total profit = Rs. 30,000
Total ratio parts = 3 + 7 = 10
Share of profit of A is given by:
Therefore, the share of profit of A is Rs. 9,000.
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