Q 1

Ram and Raj started a business investing Rs.200000 and Rs.50000 respectively. In what ratio should they divide the profit earned?

A)

2:5

B)

5:2

C)

4:1

D)

1:4

**Correct Option** -** C****Explanation**

The profits are divided in proportion to the investments.

200000:50000 = 4:1

Q 2

A and B enter into a partnership investing equal amounts. A doubled his capital after a year while B withdrew his capital after 1.5 years. Find the ratio of profit share after 2 years.

A)

2:1

B)

3:2

C)

4:3

D)

3:1

**Correct Option** -** A****Explanation**

1.5 years = 18 months

Let the amount invested by them be Rs.x

A:B = [(x*12)+(2x*12)]:[x*18]

= 36x:18x

= 36:18

= 2:1

Q 3

A, B and C invest Rs.50000, Rs.30000 and Rs.20000 in a business respectively. If the profit earned is Rs. 20000, find C’s share of the profit.

A)

Rs.10000

B)

Rs.6000

C)

Rs.4000

D)

Rs.2000

**Correct Option** -** C****Explanation**

Share of Profits between A, B and C is in the ratio 5:3:2

C’s share = (2/10) * 20000 = Rs.4000

Q 4

A and B invest Rs.50000 and Rs.75000 in a business respectively. B withdraws the amount after 8 months. If the profit earned after a year is Rs. 30000, find B’s share of the

A)

Rs.12000

B)

Rs.15000

C)

Rs.18000

D)

Rs.20000

**Correct Option** -** C****Explanation**

Share of Profits between A and B is in the ratio

50000*12:75000*8 = 1:1

B’s share = ½ * 30000 = RS.15000

Q 5

A and B invest Rs.150000 and Rs.200000 in a business respectively. A withdraws an amount of Rs.50000 after 6 months. B withdraws an amount of Rs.50000 after 8 months. If the profit earned is Rs. 74000, find A’s share of the profit.

A)

Rs.5000

B)

Rs.13000

C)

Rs.30000

D)

Rs.40000

**Correct Option** -** C****Explanation**

A:B = [(150000*6)+(100000*6)] :

[(200000*8)+(150000*4)]

= 15:22

A's share = (15/37)*74000 = Rs.30000

Q 6

Arun started a company investing Rs. 200000. After 8 months, Varun joined him with a capital of Rs. 120000. After 2 years, they earned a profit of Rs. 42000, what is Varun’s share of the profit?

A)

Rs.6000

B)

Rs.12000

C)

Rs.14000

D)

Rs.30000

**Correct Option** -** B****Explanation**

Profits of Arun and Varun are in the ratio

200000*24:120000*16 = 5:2

Varun’s share

= (2/7) * 42000 = Rs.1200

Q 7

A, B and C invest Rs.50000, Rs.75000 and Rs.125000 in a business respectively. The profit earned is Rs.20000. Find the profit share of B.

A)

Rs.2000

B)

Rs.4000

C)

Rs.6000

D)

Rs.10000

**Correct Option** -** C****Explanation**

Ratio of the shares of A, B and C

= 50000:75000:12500

= 2:3:5

B’s share of profit

= (3/10) * 20000

= Rs.6000

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