Abdul and Mohsin together invested ₹56,000 in a business. At the end of the…

2025

Abdul and Mohsin together invested ₹56,000 in a business. At the end of the year, out of a total profit of ₹16,000, Mohsin's share was ₹2,700. What was the difference of their investment?

  1. A.

    ₹38,670

  2. B.

    ₹37,100

  3. C.

    ₹36,122

  4. D.

    ₹38,052

Show answer & explanation

Correct answer: B

Concept

When two or more partners invest capital for the SAME time period, the total profit is divided in exact proportion to their investments. This works both ways: if the profit shares are known, the ratio of the shares directly gives the ratio of the investments.

Application

  1. Total profit = ₹16,000 and Mohsin's share = ₹2,700, so Abdul's share = 16,000 − 2,700 = ₹13,300.

  2. Since profit is shared in the ratio of investment, Mohsin : Abdul (investment) = Mohsin : Abdul (profit share) = 2,700 : 13,300.

  3. Dividing both terms by their HCF (100) gives the ratio in lowest terms: 2,700 : 13,300 = 27 : 133.

  4. Sum of the ratio parts = 27 + 133 = 160, and this represents the total investment of ₹56,000, so 1 part = 56,000 ÷ 160 = ₹350.

  5. Mohsin's investment = 27 × 350 = ₹9,450.

  6. Abdul's investment = 133 × 350 = ₹46,550.

  7. Difference of their investments = 46,550 − 9,450 = ₹37,100.

Cross-check

The two investments add up to 9,450 + 46,550 = ₹56,000, matching the given total. Also, Mohsin's profit share works out to 16,000 × (27 ÷ 160) = ₹2,700, exactly matching the given data, confirming the ratio is correct.

So the difference between Abdul's and Mohsin's investments is ₹37,100.

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