A and B had a joint business in which A invested Rs 60,000 in the business for one year. After 3 months B invested Rs 80,000. At the beginning of the second year, A invested Rs 30,000 more and B withdrew Rs 5,000. At the end of two years, profit earned by A is Rs 35,880. What is the profit (in Rs) earned by B, if they distributed half of the total profit equally and rest in the capital ratio?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 34,040
Explanation:
Total capital invested by A = 60000 × 12 + 90000 × 12 = 720000 + 1080000 = Rs. 1800000
Total capital invested by B = 80000 × 9 + 75000 × 12 = 720000 + 900000 = Rs. 1620000
Ratio = 1800000 : 1620000 = 10 : 9
Let the total profit earned is 4x.
Out of 4x profit, 2x is equally divided between A and B.
A's profit = x + × 2x = 35880
39x = 35880 × 19
x = Rs. 17480
Profit earned by B = x + × 2x = = = Rs. 34040