A and B started a business jointly. A's investment was thrice the investment…
2024
A and B started a business jointly. A's investment was thrice the investment of B, and the period of his investment was two times the period of investment of B. If B received Rs. 4000 as profit, then their total profit is:
- A.
Rs. 22000
- B.
Rs. 28000
- C.
Rs. 32000
- D.
Rs. 36000
Show answer & explanation
Correct answer: B
Concept: When partners invest different amounts of capital for different durations, the profit-sharing ratio between them equals the ratio of the product of (investment times time) for each partner, not just the investment amounts alone.
Let B's investment be x and B's investment period be t. Then A's investment is 3x (thrice B's) and A's period is 2t (twice B's).
Profit-sharing ratio = (A's investment times A's time) : (B's investment times B's time) = (3x times 2t) : (x times t) = 6xt : xt = 6 : 1.
B's share corresponds to 1 part of this ratio, and B received Rs. 4000, so 1 part = Rs. 4000.
Total profit = (6 + 1) parts = 7 times Rs. 4000 = Rs. 28,000.
Cross-check: A's share = 6 parts = 6 times 4000 = Rs. 24,000. Total = A's share + B's share = 24,000 + 4,000 = Rs. 28,000, confirming the result.