Multiple choice

X, Y, and Z enter into a commercial business partnership. X contributes ₹12,000 to the capital pool. Out of a total annual net profit of ₹3,000, X receives ₹1,200 and Y receives ₹1,000. What is the capital amount invested by Z?

  1. ₹6,000

  2. ₹7,000

  3. ₹8,000

  4. ₹9,000

  5. ₹10,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total profit is 3000. X gets 1200, Y gets 1000, so Z gets 3000 - 1200 - 1000 = 800. Profit is shared in proportion to capital. X/Z = 1200/800 = 12000/Z_capital. Thus, Z_capital = (800 * 12000) / 1200 = 8000.

AI explanation

Since the time period is the same, the profit sharing ratio and investment ratio are identical. Z's profit is the total profit minus the shares of X and Y, giving 3000 - 1200 - 1000 = 800. The ratio of their profits is 1200 : 1000 : 800, which simplifies to 12 : 10 : 8 or 6 : 5 : 4. Because X's capital is Rs. 12,000 for 6 parts in the ratio, one part equals Rs. 2000. Z holds 4 parts, so his capital investment is 4 multiplied by Rs. 2000, which is Rs. 8,000.

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