Profit and Loss
- A and B enter into partnership with capital contribution of $ 5000 and $ 4000 respectively. After (1 / 6) th of the time A contributes additional $ 2000. Four months after the start B withdraws (1 / 4) th his capital, then C joins the business with a capital investment of $ 5000. At the end of the year the company’s balancesheet shows a profit of $ 2804. Find the share of A in the profit.
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Computing in terms of 1 month
A’s investment = (5000 × 12) + (2000 × 10) = $ 80000
B’s investment = (4000 × 4) + (3000 × 8) = $ 40000
C’s investment = 5000 × 8 = $ 40000
A : B : C = 80000 : 40000 : 40000
A : B : C = 2 : 1 : 1
Sum of ratios = 2 + 1 + 1 = 4
Profit = $ 2804Correct Option: A
Computing in terms of 1 month
A’s investment = (5000 × 12) + (2000 × 10) = $ 80000
B’s investment = (4000 × 4) + (3000 × 8) = $ 40000
C’s investment = 5000 × 8 = $ 40000
A : B : C = 80000 : 40000 : 40000
A : B : C = 2 : 1 : 1
Sum of ratios = 2 + 1 + 1 = 4
Profit = $ 2804Now, share profit for 1 month = 2804 = $ 701 4
A’s share = 701 × 2 = $ 1402
- A, B and C enter into partnership with capital contribution of $ 25,000, $ 30,000 and $ 15,000 respectively. A is the working partner and he gets 30% of the profit for managing the business. The balance profit is distributed in proportion to the capital investment. At the year-end, A gets Rs. 200 more than B and C together. Find the total profit.
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Let the total profit be $ 100
A’s share for managing the business which is 30% of profit= $ 30
Balance profit = $ (100–30)= $ 70
Ratio of capital investment;
A : B : C = $ 25000 : Rs. 30000 : $ 15000
A : B : C = 5 : 6 : 3
Sum of ratios = 5 + 6 + 3 = 14Now, 70 = $ 5 14
Share of profit A’s = $ 5 × 5 = $ 25
B’s = $ 5 × 6 = $ 30
C’s = $ 5 × 3 = $ 15
A’s total share of profit = $ 30 + $ 25 = $ 55
Correct Option: B
Let the total profit be $ 100
A’s share for managing the business which is 30% of profit= $ 30
Balance profit = $ (100–30)= $ 70
Ratio of capital investment;
A : B : C = $ 25000 : Rs. 30000 : $ 15000
A : B : C = 5 : 6 : 3
Sum of ratios = 5 + 6 + 3 = 14Now, 70 = $ 5 14
Share of profit A’s = $ 5 × 5 = $ 25
B’s = $ 5 × 6 = $ 30
C’s = $ 5 × 3 = $ 15
A’s total share of profit = $ 30 + $ 25 = $ 55
Profit share of B and C put together = $ 30 + $ 15 = $ 45
A’s – (B’s + C’s) share = $ 55 – $ 45 = $ 10
When the difference is $ 10, the total profit is $ 100
When the difference is $ 200 (i.e., 10 × 20) total profit is $ 100 × 20 = $ 2000
- Ravi starts a business with $ 45000. After a certain period of time he is joined by Mohan who invests $ 30000. At the end of the year they divide the profit in the ratio 9 : 4. When did Mohan join Ravi?
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Suppose Mohan joins Ravi after t months.
Then, during the year Mohan’s investment was for (12 – t) months.
Ratio of profit of Ravi and Mohan = 9 : 4∴ 45000 × 12 = 9 30000 × (12 - t) 4 ⇒ 12 - t = 45000 × 4 12 30000 9
Correct Option: D
Suppose Mohan joins Ravi after t months.
Then, during the year Mohan’s investment was for (12 – t) months.
Ratio of profit of Ravi and Mohan = 9 : 4∴ 45000 × 12 = 9 30000 × (12 - t) 4 ⇒ 12 - t = 45000 × 4 12 30000 9 ⇒ 12 - t = 2 ⇒ 36 - 3t = 24 12 3
∴ t = 4 months
Hence , Mohan joins Ravi after 4 months.
- A, B and C invest their capital into a partnership business in the following manner; A invests one-half of the capital for three- fourth of the time, B invests one-third of the capital for one-half of the time and C invests the remaining capital for the whole time. If the profit earned is $ 510, how should A get?
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From the given question ,
C’s share of the capital = 1 - 
1 + 1 
= 1 2 3 6 A : B : C = 1 × 3 : 
2 3 A : B : C = 3 : 1 : 1 8 6 6 A : B : C = 9 : 4 : 4 24 24 24
A : B : C = 9 : 4 : 4
Sum of ratios of A , B and C = 9 + 4 + 4 = 17
Correct Option: C
From the given question ,
C’s share of the capital = 1 - 1 + 1 = 1 2 3 6 A : B : C = 1 × 3 : 2 3 A : B : C = 3 : 1 : 1 8 6 6 A : B : C = 9 : 4 : 4 24 24 24
A : B : C = 9 : 4 : 4
Sum of ratios of A , B and C = 9 + 4 + 4 = 17
Profit = $ 510Profit share = 510 = $ 30 17
Profit share of A = $ 30 × 9 = $ 270
- Ravi and Shyam enter into a partnership and together start a business with contributions of Rs. 15000 and $ 20000. After 4 months Mohan also joins them with contribution of $ 22500. After 9 months Shyam withdraws his contribution. At the end of the year there is a profit of $ 9000. Find the share of each in the profit.
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According to question ,
Ratio of investments are -
Ravi : Shyam : Mohan = (15000 × 12) : (20000 × 9) : (22500 × 8)
Ravi : Shyam : Mohan = 180000 : 180000 : 180000 = 1 : 1 : 1
Sum of ratios = 1 + 1 + 1 = 3
Profit = $ 9000Correct Option: B
According to question ,
Ratio of investments are -
Ravi : Shyam : Mohan = (15000 × 12) : (20000 × 9) : (22500 × 8)
Ravi : Shyam : Mohan = 180000 : 180000 : 180000 = 1 : 1 : 1
Sum of ratios = 1 + 1 + 1 = 3
Profit = $ 9000
Therefore,Share of each in the profit = 9000 = $ 3000 3
