Question Details

A and B entered into a partnership by investing Rs. 40,000 and Rs. 60,000 respectively. At the end of 6 months, A added Rs. 10,000 while B withdrew Rs. 10,000. If the total profit at the end of the year was Rs. 72,000, what is A's share of the profit?

Options

A

Rs. 42,000

B

Rs. 33,000

C

Rs. 30,000

D

Rs. 39,000

Show Answer

Correct Answer :

Option C

Rs. 30,000

Solution :

The correct option is Rs. 30,000.

Step 1: Understand the Investment Details
A and B start a business partnership with initial investments for the first 6 months, after which both change their invested amounts for the remaining 6 months of the year.

Step 2: Calculate the Equivalent Monthly Investment for A
For the first 6 months, A invests Rs. 40,000.

Investment for first 6 months=40000×6=Rs. 240000
At the end of 6 months, A adds Rs. 10,000, making A's investment Rs. 50,000 for the remaining 6 months.

Investment for next 6 months=50000×6=Rs. 300000
Total equivalent 1-month investment of A:

Total for A=240000+300000=Rs. 540000

Step 3: Calculate the Profit Sharing Ratio
Considering the final ratio of investment for A and B to share the total annual profit:

Ratio of A's share=512

Step 4: Calculate A's Share of the Total Profit
The total profit at the end of the year is Rs. 72,000.

A's share of profit=512×72000

A's share of profit=5×6000=Rs. 30000

Therefore, A's share of the profit is Rs. 30,000.

Unlock Our Free Library

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

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