Multiple choice

A starts a business with $Rs. 5000$ and $B$ joins the business $5$ months later with an investment of $Rs. 6000$. After a year, they earn a profit of $Rs. 34000$. Find the shares of $A$ and $B$ in the profit amount depending on their individual investment.

  1. $Rs. 20000, Rs. 14000$
  2. $Rs. 16000, Rs. 16000$
  3. $Rs. 14000, Rs. 20000$

  4. None of these
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A Correct answer
Explanation

A invests 5000 for 12 months (60,000). B invests 6000 for 7 months (42,000). Ratio = 60:42 = 10:7. Total profit 34000. A's share = (10/17) * 34000 = 20000. B's share = (7/17) * 34000 = 14000.

AI explanation

According to the partnership formula, the profit ratio equals the ratio of the product of investment and time. A invested Rs. 5000 for 12 months, yielding a product of 60000, while B invested Rs. 6000 for 7 months, yielding a product of 42000. Their profit sharing ratio is 60000 : 42000, which simplifies to 10 : 7, making the total 17 parts. From the total profit of Rs. 34000, A's share is (10 / 17) x 34000 = Rs. 20000, and B's share is (7 / 17) x 34000 = Rs. 14000.

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