Question

A starts a business with $Rs.5000$ and $B$ joins the business $5$ months later with an investment of $Rs.6000$. After a year, they earn a profit of $Rs.34000$. Find the shares of $A$ and $B$ in the profit amount depending on their individual investment.

• A. $Rs.20000,Rs.14000$
• B. $Rs.16000,Rs.16000$
• C. $Rs.14000,Rs.20000$
• D. None of these

Answer 1

Answer: (A)

$Rs.20000,Rs.14000$

Effective price contributed by $A=5000\times 12=60000$
Effective price contributed by $B=6000\times 7=42000$
Ratio $=\frac{60000}{42000}=\frac{10}{7}$
Total profit $=34000$
$A$ gets $=34000\times \frac{10}{17}=Rs.20000$
$B$ gets $=34000\times \frac{7}{17}=Rs.14000$.