Question
Download Solution PDFIn a business with C, A and B invest ₹50,000 and ₹60,000, respectively. The profit of C is double the profit of B. If the total profit is ₹23,000, then the profit of A (in ₹) is:
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Investment of A = ₹50,000
Investment of B = ₹60,000
The profit of C = 2 × Profit of B
Total profit = ₹23,000
Formula Used:
The ratio of profits is proportional to the investment amounts.
Total profit = Profit of A + Profit of B + Profit of C
Calculation:
Let the profit of A be PA, profit of B be PB, and profit of C be PC.
PC = 2 × PB
The ratio of investments (A : B) = 50,000 : 60,000 = 5 : 6
The ratio of profits (A : B : C) = 5 : 6 : 12 (since C = 2B)
Total ratio = 5 + 6 + 12 = 23
1 unit of profit = Total profit / Total ratio = ₹23,000 / 23
1 unit of profit = ₹1,000
PA = 5 units = 5 × ₹1,000
PA = ₹5,000
The profit of A is ₹5,000.
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