A, B, and C invested ₹24,000, ₹36,000, and ₹40,000 respectively. A's investment was for 12 months, B's for 8 months, and C's for 6 months. The total profit is ₹50,000. What is B’s share of the profit?
- (a)₹17,647.06
- (b)₹27,647.56
- (c)₹23,647.46
- (d)₹21,647.72
Answer
Why
Correct — A. Profit is shared in the ratio of capital × months.
A: 24,000 × 12 = 2,88,000
B: 36,000 × 8 = 2,88,000
C: 40,000 × 6 = 2,40,000
Divide each by 48,000: 6 : 6 : 5, a total of 17 parts
B's share: 6⁄17 × 50,000 = 3,00,000⁄17
= 17,647.0588… ≈ ₹17,647.06 → option (a)
Why the others are wrong
- (b)₹27,647.56 — ₹27,647.56 is more than half of ₹50,000. A has the same 2,88,000 capital-months as B, so B can never exceed half, and C's share pushes it lower still.
- (c)₹23,647.46 — If B got ₹23,647.46, so would A (equal capital-months), leaving C just ₹2,705.08. Yet C's 2,40,000 capital-months are 5⁄6 of B's.
- (d)₹21,647.72 — ₹21,647.72 is about 43% of ₹50,000, but B holds 6 parts of 17, about 35.3%. 6⁄17 × 50,000 comes to ₹17,647.06.
Concept
Profit follows capital × time, not capital alone. Money kept in the business longer earns a bigger claim.
B invested more than A but for fewer months, and the two products come out equal: 36,000 × 8 = 24,000 × 12 = 2,88,000. So A and B take equal shares, 6 parts each, and C takes 5.
3,00,000 ÷ 17 does not terminate, which is why the options run to paise.
Capital alone gives 24 : 36 : 40 = 6 : 9 : 10 and a B share of ₹18,000, which is not an option. The months change the answer.
All four options end in 647 rupees, so the last digits cannot separate them. The size of the share can.
Key facts
- Profit ratio = capital₁ × time₁ : capital₂ × time₂ : capital₃ × time₃.
- 2,88,000 : 2,88,000 : 2,40,000 reduces to 6 : 6 : 5 on dividing by 48,000.
- 3,00,000 ÷ 17 = 17,647.0588…, which rounds to 17,647.06.
Study next
Common traps
- Splitting in the capital ratio 6 : 9 : 10 and ignoring the months, which gives B ₹18,000.
- Giving B the larger share because B put in more money than A. B's 8 months against A's 12 cancel that out exactly.
12 Sep 2025, 09:00, Quant Q.6 also has two partners with equal capital × months (80,000 × 9 = 1,20,000 × 6), so that profit splits equally.
15 Sep 2025, 16:00, Quant Q.5 gives a non-terminating share too: 5⁄11 × 40,000 = ₹18,181.82.
Related PYQs
No directly related past PYQ was found.