Question

X, Y & Z commence a business in partnership. X puts in Rs. $20,000$ for the whole year. Y introduced Rs. $30,000$ and increases it Rs. $40,000$ at the end of four months but withdraws Rs. $10,000$ at the end of eight month. Z brings Rs. $50,000$ at first, but withdraws Rs. $15,000$ at the end of six months. Calculate the profit sharing ratio based on effective capital.

• A. $24:40:51$
• B. $41:22:54$
• C. $6:4:3$
• D. $17:13:8$

Answer 1

The correct option is A $24:40:51$

Calculation of effective capital:
$X=20,000\times 12=2,40,000$
$Y=(30,000\times 4)+(40,000\times 4)+(30,000\times 4)=4,00,000$
$Z=(50,000\times 6)+(35,000\times 6)=5,10,000$
$2,40,000:4,00,000:5,10,000$.
$24:40:51$.