X and Y enter into a partnership with capital in the ratio 3 : 5. After 5 months X adds 50% of his capital, while Y withdraws 60% of his capital. What is the share (in lakhs) of X in the annual profit of Rs 6.84 lakhs?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 3.72
Concept
Profit is divided into the ratio of their investment
Application
Let the initial investment made by X = 30 units
Let the initial investment of Y = 50 units
For 5 months, X 's captial = 30 x 5 = 150 units
For remaining 7 months, X add 50% more of original invesmention
= 45 x 7 = 315 units
Total investment of A for whole year = 150 + 315 = 465 units
Now,
Y keeps his investment for 5 months = 50 x 5 = 250 units
He withdraws 60% of the original investment
For 7 months he keeps = 20 x 7 = 140 units
Total investment of Y = 250 + 140 = 390 units
Ratio of X and Y = 465 : 390 = 31 : 26
According to the question
31 + 26 = 57 units
57 units = 6.84 lakhs
1 unit = 6.84 / 57 = 0.12
X's share = 31 x 0.12 = 3.72