M and N start a business with Rs. 2,00,000 and Rs. 3,00,000 respectively. After 4 months, M adds Rs. 1,00,000 more, and N withdraws Rs. 50,000. At the end of 1 year, they make a profit of Rs. 1,80,000. What is N's share of profit?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs. 90,000
M investment = 200000 for 4 months
After 4 months, M investment = 300000 for 8 months
M total = 200000 × 4 + 300000 × 8
M total = 800000 + 2400000
M total = 3200000
N investment = 300000 for 4 months
After 4 months, N investment = 250000 for 8 months
N total = 300000 × 4 + 250000 × 8
N total = 1200000 + 2000000
N total = 3200000
Ratio M : N = 3200000 : 3200000 = 1 : 1
Total profit = 180000
N share = 180000 × 1/2
N share = 90000