A, B and C started a business on partnership by investing ₹40000, ₹50000 and ₹70000 respectively. After 4 months A invested ₹20000 more. After 2 more months D also joined the business by investing ₹60000. After 2 more months C withdrew ₹10000. Find the sum of the shares of C and D in the profit of ₹92100 earned at the end of the year.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹44515
In a partnership, profit is shared in the ratio of each partner’s capital × the months it stays in the business. Where a capital changes, each part is multiplied by its own months.
Each partner’s capital-months (the year has 12 months):
A: ₹40000 for 4 months, then ₹60000 for 8 months: \(160000+480000=640000\)
B: ₹50000 for 12 months: \(600000\)
C: ₹70000 for 8 months (till the withdrawal after 4 + 2 + 2 months), then ₹60000 for 4 months: \(560000+240000=800000\)
D: joins after 6 months with ₹60000, for 6 months: \(360000\)
Sharing the profit:
Ratio A : B : C : D \(=64:60:80:36=16:15:20:9\) (total 60 parts)
C and D together get \(20+9=29\) parts
Their share: \(\displaystyle\frac{29}{60}\times92100=29\times1535=44515\)