A,B,C invested the capitals in a business. If A invested Rs. 10,000 more than…
2023
A,B,C invested the capitals in a business. If A invested Rs. 10,000 more than B and C invested Rs.20,000 more than A, then how should a profit of Rs.14,000 be divided among A,B and C? Given : Capital of B is Rs.10,000
- A.
2000, 1000, 3000
- B.
1000, 3000, 4000
- C.
3000, 2000, 5000
- D.
4000, 2000, 8000
Show answer & explanation
Correct answer: D
Concept: In a partnership, when all partners contribute their capital for the same time period, profit is shared in direct proportion to each partner's capital — the investment ratio IS the profit-sharing ratio.
B's capital is given as Rs. 10,000.
A invested Rs. 10,000 more than B, so A's capital = 10,000 + 10,000 = Rs. 20,000.
C invested Rs. 20,000 more than A, so C's capital = 20,000 + 20,000 = Rs. 40,000.
Investment ratio A : B : C = 20,000 : 10,000 : 40,000 = 2 : 1 : 4.
Total parts = 2 + 1 + 4 = 7, so the value of one part = Rs. 14,000 ÷ 7 = Rs. 2,000.
A's share = 2 × 2,000 = Rs. 4,000; B's share = 1 × 2,000 = Rs. 2,000; C's share = 4 × 2,000 = Rs. 8,000.
Cross-check: 4,000 + 2,000 + 8,000 = Rs. 14,000, which matches the total profit stated in the question, confirming the split.
So the profit of Rs. 14,000 is divided as Rs. 4,000 for A, Rs. 2,000 for B and Rs. 8,000 for C.