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A starts business with a capital of Rs.1200 B and C join with some investments after 3 and 6 months respectively. If the end of a year, the profit is divided in the ratio 2:3:5 respectively. What is B's investment in the business?

Correct answer: A. Rs.2400

  • A. Rs.2400
  • B. Rs.1800
  • C. Rs.3600
  • D. Rs.6000

Explanation

A's capital-time contribution is Rs.1200 x 12 months = Rs.14400-months. B joins after 3 months, so his contribution is B's capital x 9 months; because the profit ratio B:A is 3:2, B's contribution is Rs.14400 x 3/2 = Rs.21600-months. Hence B's investment is Rs.21600/9 months = Rs.2400. The likely mistake is option b, Rs.1800, which uses 12 months for B instead of the 9 months he actually invested.

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