Multiple choice

In a business of partnership. What is the difference between the share of R and T? I. R's investment is Rs. 70000 more than T's investment. II. The ratio between the period of investment is 4 : 3. III. R withdrew 10% of his investment after spending 90% of the total period.

  1. I or III

  2. Only II

  3. All

  4. Can't be answered with all three statements

  5. None of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In a partnership, profit share depends on investment × time. Let T's investment be x. Then R's investment = x + 70000. The time ratio is 4:3. Let R's time = 4t, T's time = 3t. R withdrew 10% after 90% of the period. This means R invested (x + 70000) for 90% of 4t = 3.6t, and then 0.9(x + 70000) for 0.4t. R's effective investment = (x + 70000) × 3.6t + 0.9(x + 70000) × 0.4t. T's investment = x × 3t. The profit share ratio can be calculated, but we need the actual profit amount to find the difference in shares, which is not given. Therefore, it cannot be answered.