Arvind started a business by investing ₹80,000. After 4 months, Bhavin joined with ₹1,20,000. At the end of 8 months from the sta…

Question

Arvind started a business by investing ₹80,000. After 4 months, Bhavin joined with ₹1,20,000. At the end of 8 months from the start, Chandan joined with ₹1,60,000. If the total profit is ₹1,05,000 at the end of the year, find the share of Chandan.

1. A. ₹26,500
2. B. ₹26,000
3. C. ₹26,200
4. D. ₹26,250 (Correct answer)

Correct Answer

Option D — ₹26,250

Detailed Solution & Explanation

The correct answer is ₹26,250.

Key Points

• Profit shares follow capital × time.
• Arvind: 80,000 × 12 = 9,60,000; Bhavin: 1,20,000 × 8 = 9,60,000; Chandan: 1,60,000 × 4 = 6,40,000.
• The ratio is 3 : 3 : 2 (sum 8).
• Chandan's share = (2/8) × 1,05,000 = ₹26,250.
• Count each partner's months from when they joined to year-end, multiply by capital, reduce the ratio, then split the profit.