Two persons P and Q enter into a business. P puts ₹ 14,000 more than Q, but P has invested for 8 months and Q has invested for 10 months. If P’s share is ₹ 400 more than Q’s share out of the total profit of ₹ 2,000, what is the capital contributed by P?
Correct Answer :
₹ 30,000
Solution :
The correct option is ₹ 30,000.
Let us break down the solution step-by-step to understand how we arrive at this answer.
Step 1: Understand the division of profit
The total profit from the business is ₹ 2,000.
Let the profit share of Q be ₹ x.
According to the question, P's profit share is ₹ 400 more than Q's share. Therefore, P's profit share is ₹ (x + 400).
Since the total profit is the sum of the profit shares of P and Q, we can write:
So, Q's share of the profit is ₹ 800, and P's share of the profit is:
Therefore, the ratio of the profits of P and Q is:
Step 2: Relate profit ratio to investment and time
In a partnership, the ratio of profit distribution is directly proportional to the product of the capital invested and the time period of investment.
Let the capital contributed by Q be ₹ CQ.
Since P contributes ₹ 14,000 more than Q, the capital contributed by P is ₹ (CQ + 14,000).
The investment duration for P is 8 months, and for Q is 10 months.
Substituting these values into the ratio formula:
Step 3: Solve for Q's capital (CQ)
First, simplify the fraction on the right-hand side:
Cross-multiplying to solve for CQ:
Subtracting 8CQ from both sides:
Thus, Q's capital contribution is ₹ 16,000.
Step 4: Find the capital contributed by P
P's capital is ₹ 14,000 more than Q's capital:
Therefore, the capital contributed by P is ₹ 30,000.
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