IBPS PO General Awareness: Profit, Loss and Partnership questions with solutions

Q1. A started the business with an investment of ₹36,000. B and C joined him after 3 months and 6 months, respectively. The profit is divided in the ratio 2:3:5 at the end of the year. Find the difference between the investments made by B and C in the business.

1. ₹72,000
2. ₹108,000
3. ₹81,000
4. ₹120,000

Answer: ₹108,000

In partnership, profit is divided according to capital multiplied by time. Since A invested ₹36,000 for 12 months, B for 9 months, and C for 6 months, their time-weighted capitals are in the ratio 2:3:5. Solving gives B = ₹54,000 and C = ₹162,000, so the difference is ₹108,000.

Q2. A and B started a business with investments of ₹6000 and ₹4000, respectively. If after nine months A withdrew \(\frac{2}{5}\) of his investment, then at the end of the year, by what percentage is A’s profit share more than B’s?

1. 48
2. 63
3. 24
4. 35

Answer: 35

A invests ₹6000 for 9 months and then withdraws \(2/5\), leaving ₹3600 for the last 3 months. So A’s capital-time = \(6000\times9 + 3600\times3 = 64800\). B’s capital-time = \(4000\times12 = 48000\). The ratio of profits is \(64800:48000 = 27:20\), so A’s profit is \(\frac{27-20}{20}\times100 = 35\%\) more than B’s.

Q3. What will be the share of R in the profit earned by V, R, and A together? I. They together earned a profit of ₹54,000 for a period of 1 year. II. R's investment was 25% less than V's and 50% more than A's. III. The profit of V is ₹4,000 more than that of A.

1. Only I and II together
2. II and either I or III only
3. Only II
4. Only II and III together

Answer: II and either I or III only

Since the period is the same, profit is proportional to investment. Statement II gives the ratio of investments of V, R, and A, and either Statement I or III is enough to determine the total profit distribution and hence R’s share. Therefore, II and either I or III only is sufficient.