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Explanation
A starts business with Rs. 3500.
After 5 months, B joins with A as his partner.
A’s total investment for 12 months (12 x 3500 = 42000) is 42000.
Supposing B start business with Rs. “y”; so B’s total investment for 7 months (y x 7) will be 7y.
As profit is divided among partners according to their ratio of investment.
42000/7y = 2/3
Through this equation; we can easily find out B’s contribution in the capital.
To Find
B’s contribution in the capital = ?
Solution
Let suppose;
- Initial investment of B = y
- Initial investment of A = 3500
- B’s investment for 7 months = 7y
- A’s investment for 1 year = 12 x 3500 = 42000
Now; Investment ratio = Profit ratio
42000/7y = 2/3
7y x 2 = 42000 x 3
14y = 126000
y = Rs. 9000 answer
Conclusion
A starts business with Rs. 3500 and after 5 months, B joins with A as his partner. After a year, the profit is divided in the ratio 2:3. B’s contribution in the capital is Rs. 9000.
