Question 5

A and B entered into a partnership investing `16,000 and `12,000 respectively. After 3 months, A withdrew `5000 while B invested `5000 more. After 3 more months, C joins the business with a capital of `21,000. The share of B exceeds that of C, out of a total profit of
`26,400 after one after by:

Solution

The profit will be shared based on amount and time the money was invested by person

For A : $$\left(16000\times\ 3\right)+\left(11000\times\ 9\right)$$ = 147,000

For B : $$\left(12000\times\ 3\right)+\left(17000\times\ 9\right)$$ = 189,000

For C : $$\left(21000\times\ 6\right)$$ = 126,000

Share of B will be $$\frac{189}{147+189+126}\times\ 26400\ =\ 10,800$$

Share of C will be $$\frac{126}{147+189+126}\times\ 26400\ =\ 7,200$$

Difference is 3,600


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