Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Profit and Loss

Question:

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?

Options:

69,920

38,060

34,040

58,940

Correct Answer:

34,040

Explanation:

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.