Question

A and B started a business in partnership investing Rs.20000 and Rs.15000 respectively. After six months, C joined them with Rs.20000. What will be B’s share in the total profit of Rs.25000 earned at the end of 2 years from the starting of the business?
A.Rs.7500
B.Rs.9000
C.Rs.9500
D.Rs.10000

Answer 1

Hint: First find the ratios of the share of A, B and C in the business and using this ratio of share find the B’s share in the total profit.
In this question the share of each person with their period of investment is given so we will find the total respective share of each person and then we will find the ratio of investment and using this ratio the B’s share will be calculated.

Complete step-by-step answer:
A’s investment in the business \[ = Rs.20,000\]
B’s investment in the business \[ = Rs.15,000\]
C’s investment in the business \[ = Rs.20,000\]
Now since A invested in the business for 2 years, hence A’ share
\[ = Rs.20,000 \times 24 = Rs.4,80,000\]
Also since B invested in the business for 2 years, hence B’ share
\[ = Rs.15,000 \times 24 = Rs.3,60,000\]
Now it is said that C joined the business after 6 months, hence C’ share
\[ = Rs.20,000 \times 18 = Rs.3,60,000\]
Hence we can say the ratio of the share of the three person A, B and C will be
\[ = 480000:360000:360000 = 48:36:36 = 4:3:3\]
The total ratio
\[ = 4 + 3 + 3 = 10\]
Now it is given that from the business after 2years a total of Rs.25000 was earned, so B’s share from the profit will be
\[ = \dfrac{3}{{10}} \times 25000 = Rs.7500\]
Therefore B’s share in the total profit \[ = Rs.7500\]
So, the correct answer is “Option A”.

Note: A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profit. In a general partnership, each partner shares in the profit and risks of the loss. In a limited partnership, the only general partner takes the role and responsibilities while a limited partner can invest in the business without taking on active responsibilities and personal financial liabilities.