Question

A and B start a business with capitals in the ratio 5:3. After 6 months, A withdraws ₹10,000 and B doubles his investment. If the initial investment of A was ₹50,000, and the total profit after 1 year is ₹84,000, find the profit share of A.

• A. ₹42000
• B. ₹50000
• C. ₹60000
• D. ₹45000

Answer 1

Answer:

A. ₹42000

Initial capitals are in the ratio 5 : 3.

Given A's initial investment = ₹50,000.

So B's initial investment:

$\frac{3}{5}\times 50,000 = 30,000$

First 6 months

• A invests ₹50,000

• B invests ₹30,000

Next 6 months

• A withdraws ₹10,000, so invests ₹40,000

• B doubles his investment, so invests ₹60,000

Capital × Time

A:

$50,000 \times 6 + 40,000 \times 6$
= 300,000 + 240,000
= 540,000

B:

$30,000 \times 6 + 60,000 \times 6$
= 180,000 + 360,000
= 540,000

Thus,

A:B = 540,000:540,000 = 1:1

Total profit = ₹84,000.

So A's share:

$\frac{1}{1+1}\times 84,000$
= 42,000

A's profit share = ₹42,000.