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A starts an industry with $ 20 lakhs. After 4 months he enters into a partnership with B who contributes $ 40 lakhs. C joins them after another 3 months with a capital of $ 60 lakhs. At the year end, the balance sheet shows a profit of $ 74000. Find the share of A in the profit.
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- $ 32000
- $ 24000
- $ 18000
- $ 16000
Correct Option: B
On the basis of given details in question ,
A’s investment is $ 20 lakhs for the whole year i.e., 12 months which is equivalent to 20 × 12 = $ 240 lakhs for 1 month
B’s investment is $ 40 lakhs for (12 – 4) = 8 months is equivalent to 40 × 8 = $ 320 lakhs for 1 month.
C’s investment is $ 60 lakhs for 3 months is equivalent to 60 × 3 = $ 180 lakhs for 1 month
The share in the profit should be in the following ratio,
A : B : C = 240 : 320 : 180 = 12 : 16 : 9
Sum of ratios = 12 + 16 + 9 = 37
| Profit for 1 month = | = $ 2000 | 37 |
A’s share = $ (12 × 2000) = 24000
