Three persons A, B and C start a venture with capitals ₹ 1,20,000; ₹ 90,000; and ₹ 60,000 respectively. After 4 months A withdraws ₹ 20,000; after 8 months B adds ₹ 30,000. At the end of year the profit is ₹ 2,88,000. Find C's share.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹ 64,800
When capitals stay in the business for different periods, profit is shared in the ratio of capital × time (the capital-months) of each partner.
The capital-months:
A, ₹ 1,20,000 for 4 months and ₹ 1,00,000 for 8 months: \(120000\times4+100000\times8=480000+800000=1280000\)
B, ₹ 90,000 for 8 months and ₹ 1,20,000 for 4 months: \(90000\times8+120000\times4=720000+480000=1200000\)
C, ₹ 60,000 for all 12 months: \(60000\times12=720000\)
C’s share:
Ratio A : B : C \(=128:120:72=16:15:9\), a total of 40 parts
C’s share \(\displaystyle=288000\times\frac{9}{40}=\) ₹ 64,800