A, B and C enter into a partnership with a capital in which A's contribution…

2025

A, B and C enter into a partnership with a capital in which A's contribution is Rs. 10,000. If out of a total profit of Rs. 1000, A gets Rs. 500 and B gets Rs. 300, then C's capital is:

  1. A.

    Rs. 4000

  2. B.

    Rs. 5000

  3. C.

    Rs. 6000

  4. D.

    Rs. 7000

Attempted by 4 students.

Show answer & explanation

Correct answer: A

In a partnership, when all partners' capitals are invested for the same time period, the ratio in which they share profit is exactly the ratio of their capitals. So once the profit-sharing ratio is known, every partner's capital can be found by scaling that ratio against any one partner's known capital.

  1. Total profit is Rs. 1000. A gets Rs. 500 and B gets Rs. 300.

  2. C's share of profit = 1000 - (500 + 300) = Rs. 200.

  3. The profit-sharing ratio A : B : C = 500 : 300 : 200 = 5 : 3 : 2.

  4. Since capital is proportional to profit share, A's capital of Rs. 10,000 corresponds to ratio part 5.

  5. Value of one ratio part = 10,000 / 5 = Rs. 2,000.

  6. C's capital corresponds to ratio part 2, so C's capital = 2 x 2,000 = Rs. 4,000.

Cross-check: total capital = (5 + 3 + 2) x 2,000 = Rs. 20,000, giving A : B : C capitals as 10,000 : 6,000 : 4,000 -- a ratio of 5 : 3 : 2, matching the profit ratio and confirming C's capital is Rs. 4,000.

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