Simran started a software business by investing Rs. 50,000. After six months,…
2024
Simran started a software business by investing Rs. 50,000. After six months, Nanda joined her with a capital of Rs. 80,000. After 3 years, they earned a profit of Rs. 24,500. What was Simran's share in the profit?
Answer: B. Rs. 10500 — Concept: When partners invest for different durations in a partnership, profit is shared in the ratio of (capital multiplied by time invested), not by capital…
- A.
Rs. 10100
- B.
Rs. 10500
- C.
Rs. 12000
- D.
Rs. 13000
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Correct answer: B
Concept: When partners invest for different durations in a partnership, profit is shared in the ratio of (capital multiplied by time invested), not by capital alone.
Simran invests Rs. 50,000 for the entire duration of 3 years, i.e. 36 months.
Nanda joins 6 months later with Rs. 80,000, so her capital is invested for 36 - 6 = 30 months.
Capital-month ratio = (50,000 x 36) : (80,000 x 30) = 18,00,000 : 24,00,000 = 3 : 4.
Total ratio parts = 3 + 4 = 7.
Simran's share = (3/7) x 24,500 = Rs. 10,500.
Cross-check: Nanda's share = (4/7) x 24,500 = Rs. 14,000; 10,500 + 14,000 = Rs. 24,500, matching the total profit and confirming the split.