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A and B started a business with capitals Rs. 4000 and Rs. 6000. After 5 months C joins with a capital of Rs. 8000. At the end of a year they got a profit of Rs. 1760. Find the share of B.
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a
Rs. 840
b
Rs. 720
c
Rs. 640
d
Rs. 480
answer is A.
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Detailed Solution
Business Profit Sharing Solution
A and B started a business with capitals Rs. 4000 and Rs. 6000. After 5 months C joins with a capital of Rs. 8000. At the end of a year they got a profit of Rs. 1760. Find the share of B.
Step 1: Determine the investment and time for each person.
- A's investment: Rs. 4000 for the entire year (12 months).
- B's investment: Rs. 6000 for the entire year (12 months).
- C's investment: Rs. 8000, but C joins after 5 months, so C invests for 7 months.
Step 2: Calculate the effective capital invested by each person.
The effective capital is calculated by multiplying the amount of capital by the time it was invested.
- A's effective capital: 4000 × 12 = 48,000
- B's effective capital: 6000 × 12 = 72,000
- C's effective capital: 8000 × 7 = 56,000
Step 3: Calculate the total effective capital.
Total effective capital = A's effective capital + B's effective capital + C's effective capital
48,000 + 72,000 + 56,000 = 176,000
Step 4: Calculate the profit-sharing ratio.
The ratio of the investments is:
- A: 48,000
- B: 72,000
- C: 56,000
Simplifying the ratio, we divide each term by 8,000:
48,000 ÷ 8,000 : 72,000 ÷ 8,000 : 56,000 ÷ 8,000 = 6 : 9 : 7
Step 5: Calculate B's share of the profit.
The total profit is Rs. 1760, and B’s share of the profit is in the ratio of 9 out of the total of 6 + 9 + 7 = 22 parts.
B's share of the profit:
(9 / 22) × 1760 = 720
Final Answer:
The share of B is Rs. 720.