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Explanation
- A and B started a business in partnership investing Rs. 20000 and Rs. 15000 respectively.
- C joins them after six months with an investment of 20000.
First we’ll calculate A, B and C’s investment for 24 months (1 year = 24 months), 24 months and 18 months respectively (20000 x 24 = 480000, 15000 x 24 = 360000 and 20000 x 18 = 360000).
As the ratio of investment always equals to the ratio of profit so ratio of A : B : C will be reduced to its lowest form.
Now, share of B at the end of 24 months will be deduced by placing all the known values in the formula mentioned here under as:
B’s share in profit = (B’s ratio of investment x total profit)/total ratio
To Find
B’s share in profit = ?
Solution
Total investment of A for 24 months = 20000 x 24 = 480000
Total investment of B for 24 months = 15000 x 24 = 360000
Total investment of C for 18 months = 20000 x 18 = 360000
A : B : C = 480000 : 360000 : 360000
A : B : C = 4 : 3 : 3 (and 4 + 3 + 3 = 10)
B’s share in profit = (3 x 25000)/10
B’s share in profit = Rs. 7500 answer
Conclusion
A and B started a business in partnership investing Rs. 20000 and Rs. 15000 respectively. After six months, C joined them with Rs. 20000. The B’s share in the total profit of Rs. 25000 earned at the end of 2 years from the starting of the business will be Rs. 7500.
