WBCS.LIVE practice question
A, B, and C enter into a partnership. A invests 1/3 of the total capital for 1/3 of the total time. B invests 1/6 of the total capital for 1/3 of the time, and C invests the remaining capital for the entire time. If the total profit earned at the end of the term is Rs 24,000, what is C's share of the profit?
Solve this multiple-choice question and check the correct answer with its explanation below.
Answer options
Correct answer and explanation
Correct answer: Rs 18,000
Explanation: โ Correct Answer: C) Rs 18,000 ๐ Explanation: Let the total capital be 6 units and the total time be 12 months. A's capital is 2 units (1/3 of 6) invested for 4 months (1/3 of 12). A's effective investment = 2 ร 4 = 8. B's capital is 1 unit (1/6 of 6) invested for 4 months. B's effective investment = 1 ร 4 = 4. C's capital is the remaining 3 units (6 - 2 - 1) invested for the full 12 months. C's effective investment = 3 ร 12 = 36. The profit-sharing ratio for A : B : C is 8 : 4 : 36, which simplifies to 2 : 1 : 9. The total ratio parts equal 12 (2 + 1 + 9). Therefore, C's share of the profit is (9 รท 12) ร 24,000, which perfectly equals Rs 18,000