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A and B began business with Rs.3000 and Rs.4000 after 8 months, A withdraws Rs.1000 and B advances Rs.1000 more. At the end of the year, their profits amounted to Rs.630 find the share of A.

Correct answer: A. Rs.240

  • A. Rs.240
  • B. Rs.350
  • C. Rs.340
  • D. Rs.390

Explanation

A contributes Rs.3000 x 8 months + Rs.2000 x 4 months = Rs.32000-months. B contributes Rs.4000 x 8 months + Rs.5000 x 4 months = Rs.52000-months, so their profit ratio is 32:52 = 8:13. A's share is Rs.630 x 8/21 = Rs.240. The likely mistake is option c, Rs.340, which does not follow the capital-time ratio after both partners change their investments.

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