A & B started a business investing Rs 10,000 and Rs. 20.000 respectively, A withdraw his capital after 6 months. At the end of the year A receives 2000 as his share of the profit. How much was B share

1. A

   Rs 5000

2. B

   Rs 6000

3. C

   Rs 7000

4. D

   Rs 8000

Appeared in: BSF Staff Nurse - 2015

Explanation

• The profit-sharing ratio is determined by the product of the investment amount and the duration of the investment for each partner.
• A's investment is equivalent to Rs. 10,000 for 6 months (10,000 x 6 = 60,000).
• B's investment is equivalent to Rs. 20,000 for the full year, i.e., 12 months (20,000 x 12 = 240,000).
• The profit ratio of A to B is 60,000 : 240,000, which simplifies to 1:4.
• If A's share (representing 1 part of the ratio) is Rs. 2,000, then B's share (representing 4 parts) will be 4 times A's share.
• Therefore, B's share is 4 x 2,000 = Rs. 8,000.

Why Other Options Were Wrong

• Option A: This amount would be incorrect as it does not align with the calculated 1:4 profit-sharing ratio. It might result from an arithmetic error, such as incorrectly simplifying the ratio.
• Option B: This value does not correspond to the 1:4 profit ratio derived from the partners' effective investments. It might arise from a miscalculation of the ratio or the final multiplication.
• Option C: This is an incorrect calculation. It does not follow the 1:4 profit-sharing ratio established by the capital and time investments of the partners.

Related Visual

Clinical Relevance

• Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Partnership and Profit Sharing as background academic context rather than a clinical decision trigger.
• This question tests basic mathematical aptitude and logical reasoning, which are essential skills for nurses in various calculations, such as medication dosage, IV drip rates, and data interpretation.
• While not a direct clinical scenario, the ability to perform multi-step calculations accurately is a foundational skill for ensuring patient safety in a clinical setting.
• What if A had invested for 8 months instead of 6? The ratio would become (10,000 x 8) : (20,000 x 12) = 80,000 : 240,000 = 1:3. B's share would then be 3 x 2,000 = Rs. 6,000.

How to Approach the Question

• First, identify the capital invested by each partner (A: Rs. 10,000, B: Rs. 20,000).
• Next, identify the time period for which each partner invested their capital. A invested for 6 months, and B invested for the entire year (12 months).
• Calculate the profit-sharing ratio by finding the product of each partner's capital and their investment time. The formula is: Ratio = (Capital_A × Time_A) : (Capital_B × Time_B).
• Substitute the values: (10,000 × 6) : (20,000 × 12) = 60,000 : 240,000.
• Simplify the ratio by dividing both numbers by their greatest common divisor (60,000), which gives a ratio of 1:4.
• Use the given profit of partner A (Rs. 2,000), which corresponds to the '1' part of the ratio, to find the value of the '4' parts for partner B.

Concept Tested & Keywords

• Concept Tested: Partnership and Profit Sharing
• Stem keywords: started a business, investing, withdraw his capital, share of the profit
• Lead-in keywords: How much

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