Question

A and B started a partnership business investing Rs.20,000 and Rs.15,000 respectively. C joined them with Rs.20,000 after six months. Calculate B's share in the total profit of Rs.25,000 earned at the end of 2 years from the starting of the business?

(a) Rs. 7,500
(b) Rs. 10,000
(c) Rs. 12,500
(d) Rs. 15,000

Answer 1

B's share in the total profit of Rs.25,000 is Rs. 7,500. Option A is correct.

Step-by-step explanation:

To solve this problem, let's first calculate the ratio in which the profits will be shared among A, B, and C.

A invested for the full 2 years, B for 2 years, and C for 1.5 years (6 months is half a year).

The ratio of their investments multiplied by the time they invested will give the ratio of their profits.

A's investment = Rs. 20,000 for 2 years = Rs. 20,000 * 2 = Rs. 40,000

B's investment = Rs. 15,000 for 2 years = Rs. 15,000 * 2 = Rs. 30,000

C's investment = Rs. 20,000 for 1.5 years = Rs. 20,000 * 1.5 = Rs. 30,000

The total investment for profit sharing = Rs. 40,000 (A) + Rs. 30,000 (B) + Rs. 30,000 (C) = Rs. 100,000

Now, let's find the ratio of their profits:

A's share = (A's investment / Total investment) * Total profit

A's share = (40,000 / 100,000) * 25,000

A's share = Rs. 10,000

B's share = (B's investment / Total investment) * Total profit

B's share = (30,000 / 100,000) * 25,000

B's share = Rs. 7,500

C's share = (C's investment / Total investment) * Total profit

C's share = (30,000 / 100,000) * 25,000

C's share = Rs. 7,500

Therefore, B's share in the total profit of Rs. 25,000 is Rs. 7,500 (Option a).