Quantitative Reasoning : Partnership Problem

Question

A and B enter in to a partnership and A invests Rs.10,000 in the partnership. At the end of 4 months he withdraws Rs.2000. At the end of another 5 months, he withdraws another Rs.3000. If B invests a certain sum in the partnership at the beginning of the year and leaves it intact and receives Rs.9600 as his share of the total profit of Rs.19,100 for the year, how much did B invest in the company?

1. Rs.12,000
2. Rs.96,000
3. Rs.8000
4. Rs.6000
   
   

Correct Answer

Choice (3). Rs.8000

Explanatory Answers

The total profit for the year is 19100. Of this B gets Rs.9600. Therefore, A would get (19100 – 9600) = Rs.9500.

The partners split their profits in the ratio of their investments.

Therefore, the ratio of the investments of A : B = 9500 : 9600 = 95 : 96.

A invested Rs.10000 initially for a period of 4 months. Then, he withdrew Rs.2000.
Hence, his investment has reduced to Rs.8000 (for the next 5 months).
Then he withdraws another Rs.3000. Hence, his investment will stand reduced to Rs.5000 during the last three months.

So, the amount of money that he had invested in the company on a money-month basis will be = 4 * 10000 + 5 * 8000 + 3 * 5000 = 40000 + 40000 + 15000 = 95000

If A had 95000 money months invested in the company, B would have had 96,000 money months invested in the company (as the ratio of their investments is 95 : 96).

If B had 96,000 money-months invested in the company, he has essentially invested = Rs.8000

---

CAT, XAT, TANCET Practice Questions and Answers : Listed Topicwise

Number Theory		Permutation Combination		Probability		Inequalities
Geometry		Mensuration		Trigonometry		Coordinate Geometry
Percentages		Profit Loss		Ratio Proportion		Mixtures Alligation
Speed Time Distance		Pipes Cisterns		Interest		Races
Average, Mean		AP, GP, HP		Set Theory		Clocks Calendars
Algebra		Function		English Grammar		General Awareness
Data sufficiency		TANCET Papers		XAT Papers