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Partnership

If C invests ...

Question

If C invests Rs.5000 in a business and D joins him after 7 months investing Rs.12000, find the difference in the profit share of C and D after 1 year?

A

400

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B

500

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C

600

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D

700

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E

0

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Solution

The correct option is E
0

$\frac{I n v e s t m e n t o f C \times t i m e o f i n v e s t m e n t o f C}{I n v e s t m e n t o f D \times t i m e o f i n v e s t m e n t o f D}$ = $\frac{P r o f i t o f C}{P r o f i t o f D}$

$\frac{5 \times 12}{12 \times 5} = \frac{P r o f i t o f C}{P r o f i t o f D}$

Profit of C = Profit of D

So, difference in profit share is 0.

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