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A started a business with an investment of Rs. 70000 and after 6 months B joined him investing Rs. 120000. If the profit at the end of a year is Rs. 52000, then the share of B is?

Correct answer: B. Rs. 24000

  • A. Rs. 28000
  • B. Rs. 24000
  • C. Rs. 30000
  • D. Rs. 26000
  • E. None of these

Explanation

A's investment-time is Rs. 70000 x 12 = Rs. 840000, while B's is Rs. 120000 x 6 = Rs. 720000, so their profit ratio is 7:6. B's share is Rs. 52000 x 6/13 = Rs. 24000. Option a results from assigning B the larger share merely because B invested more money, without considering that he invested for only six months.

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