Multiple choice

Choose the correct answer from the alternatives given. A starts a business with Rs. 3500 and after 5 months, B joins with A as his partner. After a year. the profit is divided in the ratio 2 : 3. What is B's contribution in the capital?

  1. Rs. 8000

  2. Rs. 8500

  3. Rs. 9000

  4. Rs. 7500
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A invested 3500 for 12 months, totaling 42000. Let B's investment be x for 7 months (12 - 5 = 7), totaling 7x. The profit ratio is 42000 / 7x = 2 / 3, which simplifies to 6000 / x = 2 / 3, so x = 9000.

AI explanation

Using the partnership profit ratio formula, we equate the ratio of their effective capital investments to the given profit ratio. A invested 3500 for 12 months, giving an effective capital of 42000. Let B's contribution be x; since B joined after 5 months, the investment was for 7 months, making the effective capital 7x. We set the ratio 42000 to 7x equal to 2 to 3, which simplifies to 126000 equaling 14x, meaning x is 9000. B's contribution in the capital is Rs. 9000.

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