What is the difference in the shares of profit between P and Q in a joint business at the end of one year? (M.B.A., 2007) I. P invested ` 80000 and withdrew ` 20000 after 6 months. II. Q joined four months after the start of business. III. Q’s amount was 80% of P’s amount during the last six months.
(a)I and II only
(b)II and III only
(c)All I, II and III
(d)Even with all I, II and III together, the answer cannot be arrived at.
(e)None of these
Answer
Answer (as printed): D
Explanation
I. P’s investment = (80000 × 6 + 60000 × 6) = 840000 for 1 month. II & III. Q’s investment = 80% of ` 60000 for 8 months = ` (48000 × 8) for 1 month = 384000 for 1 month P : Q = 840000 : 384000 = 35 : 16. But, the total profit is not given, so data is inadequate. ∴ Correct answer is (d).
Explanation as extracted from the printed page; notation may be imperfect.