Understanding the Investment Scenario
To determine the investment of A, we need to analyze the information given about the total investment, the profit, and B's share of the profit.
Total Investment
- A and B together invested Rs 10,000 in the business.
Profit Distribution
- The total profit at the end of the year is Rs 500.
- B's share of the profit is Rs 150.
Calculating A's Share of Profit
- Since the total profit is Rs 500 and B's share is Rs 150, we can calculate A's share as follows:
- A's share = Total profit - B's share = Rs 500 - Rs 150 = Rs 350.
Investment Ratio
- The profit gained by each partner is proportional to their investment. Therefore, we can set up the ratio of their investments based on their shares of profit.
- Let A's investment be Rs x. Thus, B's investment would be Rs (10,000 - x).
- The ratio of their investments can be expressed as:
- A's share of profit : B's share of profit = A's investment : B's investment
- 350 : 150 = x : (10,000 - x)
Simplifying the Ratio
- To simplify, we divide both sides by 50:
- 7 : 3 = x : (10,000 - x)
- This implies that for every 10 parts of investment, A invests 7 parts and B invests 3 parts.
Calculating A's Investment
- Let the total parts be 7 + 3 = 10 parts.
- Therefore, each part = 10,000 / 10 = Rs 1,000.
- A's investment = 7 parts x Rs 1,000 = Rs 7,000.
Conclusion
A's investment in the business is Rs 7,000.