A started a business with ₹30,000. B joined after 5 months with ₹40,000. At the end of the year, the total profit was ₹80,000. What is the share of A?
Show answer & explanation
Correct answer: C
Explanation
Given:
A's investment = ₹30,000 (12 months)
B's investment = ₹40,000 (5 months included)
B's time = 7 months
Total profit = ₹80,000
A's investment = 30,000 × 12 = 360,000
B's investment = 40,000 × 7 = 280,000
Profit ratio:
A : B = 360,000 : 280,000 = 9 : 7
Total share = 9 + 7 = 16
A's share = (9 / 16) × 80,000 = 45,000
A's share = ₹45,000