Question Details

A starts a business with Rs. 5000 and B joins the business 5 months later with an investment of Rs. 6000. After a year they earn a profit of Rs. 34000, find the shares of A and B in the profit amount depending on their individual investment.

Options

A

Rs. 20000, Rs. 14000

B

Rs. 16000, Rs. 16000

C

Rs. 14000, Rs. 20000

D

none of these

Show Answer

Correct Answer :

Option A

Rs. 20000, Rs. 14000

Solution :

Correct Option: Rs. 20000, Rs. 14000


To find the shares of A and B in the total profit, we need to calculate the ratio of their effective investments over the total period of 1 year (12 months).


Step 1: Calculate the effective investment of A and B

A started the business with Rs. 5000 and stayed for the entire year (12 months).

Investment of A for 12 months=5000×12=Rs. 60000


B joined 5 months later with Rs. 6000, which means B's money was invested for (12 - 5) = 7 months.

Investment of B for 7 months=6000×7=Rs. 42000


Step 2: Find the ratio of their profits

The profit is divided in the ratio of their effective investments:

Ratio of profit (A : B)=60000:42000

Dividing both terms by 6000, we get:

Ratio (A : B)=10:7


Step 3: Calculate the individual shares from the total profit

Total ratio parts = 10 + 7 = 17 parts.

Total profit = Rs. 34000.


Share of A=1017×34000=10×2000=Rs. 20000


Share of B=717×34000=7×2000=Rs. 14000


Therefore, the shares of A and B in the profit amount are Rs. 20000, Rs. 14000.

Unlock Our Free Library

Access expert-curated educational resources and study materials—completely free.

Discover more resources

You may also like

Mock Tests

View All
  • CLAT
  • intermediate
  • 2 hours
  • current affairs, general knowledge, legal reasoning, logical reasoning, quant

  • CLAT
  • intermediate
  • 2 hours
  • current affairs, english, general knowledge, legal reasoning, logical reasoning, quant

Ask AI Tutor
5 left
Q1 View Question & Options
AI Tutor is solving this question...
Reading question context & options...