Question 40

Sujoy, Mritunjoy and Paranjoy are three friends, who have worked in software firms Z Solutions, G Software’s and R Mindpower respectively for decade. The friends decided to float a new software firm named XY Infotech in January 2010. However, due to certain compulsions, Mritunjoy and Paranjoy were not able to immediately join the start-up in the appointed time. It was decided between friends that Sujoy will be running the venture as the full time director during 2010, and Mritunjoy and Paranjoy will be able to join the business only in January 2011. In order to compensate Sujoy for his efforts, it was decied that he will receive 10 percent of the profits and in the first year will invest lesser amount as compared to his friends. The remaining profit will be distributed among the friends in line with their contribution. Sujoy invested Rs. 35,000/- for 12 months, Mritunjoy invested Rs. 1,30,000/- for 6 months and Paranjoy invested Rs. 75,000/- for 8 months. If the total profit earned during 2010 was Rs. 4,50,000/-, then Paranjoy earned a profit of:

Solution

Total profit = Rs. 450000
Sujoy will get 10% of this.
So, the profit to be distributed = Rs. 405000
Sujoy's investment = 12 * Rs. 35000 = Rs. 420000
Mritunjoy's investment = 6 * Rs. 130000 = Rs.780000
Paranjoy's investment = 8 * Rs. 75000 = Rs. Rs. 600000
Paranjoy's share in profit = Rs. $$\dfrac{600000}{420000 + 780000 + 600000}$$ * 405000 = Rs. 135000

Hence, option B is the correct answer.


Create a FREE account and get:

  • All Quant Formulas and shortcuts PDF
  • 170+ previous papers with solutions PDF
  • Top 5000+ MBA exam Solved Questions for Free

cracku

Boost your Prep!

Download App