A and B had a joint business in which A invested ₹60,000 in the business for one year. After 3 months B invested ₹80,000. At the beginning of the second year, A invested ₹30,000 more and B withdrew ₹5,000. At the end of two years, profit earned by A is ₹35,880. What is the profit (in ₹) earned by B, if they distributed half of the total profit equally and rest in the capital ratio?
Answer & explanation
Correct answer: option 3
According to the question,
Total capital invested by A = 60,000 × 12 + 90,000 × 12
= 720,000 + 1,080,000 = Rs 1,800,000
Total capital invested by B = 80,000 × 9 + 75,000 × 12
= 720,000 + 900,000 = Rs 1,620,000
Ratio = 1,800,000 : 1,620,000
= 10 : 9
Let the total profit earned is 4p
Now, out of 4p profit, 2p is equally divided between A and B.
A's profit-
= p + 10/19 × 2p = 35,880
= 39p = 35,880 × 19
= p = 35,880 × 19/39 = Rs 17,480
Now,Profit earned by B = p + 9/19 × 2p = 37p/19 = 37/19 × 17,480
= Profit of B = Rs 34,040.