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?
Correct Answer :
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.
At the end of 6 months, A adds Rs. 10,000, making A's investment Rs. 50,000 for the remaining 6 months.
Total equivalent 1-month investment of A:
Step 3: Calculate the Profit Sharing Ratio
Considering the final ratio of investment for A and B to share the total annual profit:
Step 4: Calculate A's Share of the Total Profit
The total profit at the end of the year is Rs. 72,000.
Therefore, A's share of the profit is Rs. 30,000.
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