X, Y and Z enter into a partnership with capital shares in the ratio 1/4 : 1/6…
2026
X, Y and Z enter into a partnership with capital shares in the ratio 1/4 : 1/6 : 1/10. At the end of one year, X withdraws one-fourth of his capital and Z withdraws half of his capital. The profit of ₹2511 for that completed year is then divided among them. What is Z's share (in ₹) in the profit?
Answer: D. 486 — ConceptIn a partnership, profit is divided in the ratio of capital multiplied by the time for which that capital remains invested. A capital change made at…
- A.
493
- B.
464
- C.
433
- D.
486
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Show answer & explanation
Correct answer: D
Concept
In a partnership, profit is divided in the ratio of capital multiplied by the time for which that capital remains invested.
A capital change made at the end of the accounting period does not alter that period's capital-time weights.
Application
Scale 1/4 : 1/6 : 1/10 by the LCM 60. The capital ratio is 15 : 10 : 6.
All three capitals remain unchanged throughout the completed year; the withdrawals occur only at its end. Thus their capital-time weights remain 15 : 10 : 6.
The total is 15 + 10 + 6 = 31 units, so one unit of profit is ₹2511 ÷ 31 = ₹81.
Z has 6 units, so Z's share is 6 × ₹81 = ₹486.
Cross-check
₹486/₹2511 = 6/31, exactly Z's capital-time fraction. Therefore Z's share is ₹486.