Calculate a partner’s share of profit in business

This is in continuation to the last article focusing on profit and loss topic. Here are practice questions along with solutions that will help you in your preparation for the State government recruitment jobs. 1. A, B and C started a business by investing 40,500, 45,000 and 60,000 respectively. After 6 months, C withdrew 15,000 […]

This is in continuation to the last article focusing on profit and loss topic. Here are practice questions along with solutions that will help you in your preparation for the State government recruitment jobs.

1. A, B and C started a business by investing 40,500, 45,000 and 60,000 respectively. After 6 months, C withdrew 15,000 while A invested 4,500 more. In annual profit of 56,100, the share of C will exceed that of A by
a) 900 b) 1900 c) 29000 d) 3900
Ans: d
Solution: Ratio of equivalent capitals of A, B and C for 1 month
= (40500 × 6 45000 × 6) : (45000 × 12) : (60000 × 6 45000 × 6)
= (405 450) : (450 × 2) : (600 450) = 855 : 900 : 1050
= 171 : 180 : 210
= 57 : 60 : 70
Sum of the ratios = 57 60 70
= 187
Required difference
= 70 – 57 / 187 × 56100
= 13/187 × 56100
= 3900

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2. A, B and C entered into a business and their investments ratio was 5 : 4 : 3. After 4 months B invested 1,000 more and after 8 months C invested 2,000 more. At the end of one year the profit ratio was 15 : 14 : 11, then the investment of C at the beginning was?
a) 3000 b) 4000 c) 5000 d) 6000
Ans: a
Solution:
Initial investment:
A = 5x
B = 4x
C = 3
Ratio of their equivalent capitals for 1 month
= 5x × 12 : (4x × 4 (4x 1000) × 8) : (3x × 8 (3x 2000) × 4)
= 15x : (12x 2000) : (9x 2000)
 15x / (12x 2000) = 15/14
=>;14x = 12x 2000
=>; 2x = 2000
=>; x = 1000
 C’s investment = 3000

3. A starts business with 3500 and after 5 months, B joins with A as his partner. After a year, the profit is divided in the ratio 2 : 3. What is B’s contribution in the capital?
a) 8000 b) 8500 c) 9000 d) 7500
Ans: c
Solution:
A’s investment of 3500 is for 12 months
B’s investment (let it be x) is for 7 months only.
At the end of the year the profit is divided in the ratio 2 : 3 and it must be equal to the ratio of the
product, (Amount × time)
or x = 12 × 3500 / 7x = 2/3
or x = 12 × 3500 / 7x × 3/2
or x = 90000
B’s investment is 9000

4. A total profit of 3,600 is to be distributed amongst A, B and C such that A : B = 5 : 4 and B : C = 8 : 9. The share of C in the profit is?
a) 1, 800 b) 1,500 c) 1,000 d) 1,200
Ans: d
Solution: A : B = 5 : 4 = 10 : 8
B : C = 8 : 9
A : B : C = 10 : 8 : 9
Sum of ratios = 10 8 9 = 27
C’s share = 9/27 × 3600 = 1200

To be continued…
M Venkat
Director
MVK Publications
Dilsukhnagar