
Shortcut Trick
A: 40000 × 40 = 16,00,000 | B: 60000 × 32 = 19,20,000 | C: 20000 × 16 = 3,20,000
Ratio = 16 : 19.2 : 3.2 = 160 : 192 : 32 = 5 : 6 : 1
A's share = 5 parts = ₹25,000 ⇒ 1 part = ₹5,000
B's share = 6 parts = 6 × 5000 = ₹30,000
∴ The correct answer is B's profit share = ₹30,000.

Alternate Method
Given:
A invested ₹40,000 from month 1 ⇒ duration = 40 months
B joined after 8 months ⇒ duration = 40 − 8 = 32 months | Investment = ₹60,000
C joined after 8 + 16 = 24 months ⇒ duration = 40 − 24 = 16 months | Investment = ₹20,000
A's profit share = ₹25,000
Find: B's profit share
Formula used:
Profit ratio = Capital × Time
Each partner's share = (Their ratio part ÷ Total ratio parts) × Total Profit
Calculations:
Step 1: Find duration of each partner
⇒ A invests from month 0 to month 40 ⇒ duration = 40 months
⇒ B joins at month 8, exits at month 40 ⇒ duration = 40 − 8 = 32 months
⇒ C joins at month 8 + 16 = month 24, exits at month 40 ⇒ duration = 40 − 24 = 16 months
Step 2: Calculate Capital × Time for each
⇒ A = 40,000 × 40 = 16,00,000
⇒ B = 60,000 × 32 = 19,20,000
⇒ C = 20,000 × 16 = 3,20,000
Step 3: Find profit ratio
⇒ A : B : C = 16,00,000 : 19,20,000 : 3,20,000
⇒ Divide by 3,20,000: = 5 : 6 : 1
Step 4: Find profit shares
⇒ Total parts = 5 + 6 + 1 = 12
⇒ A's share = 5 parts = ₹25,000
⇒ 1 part = 25,000 ÷ 5 = ₹5,000
⇒ B's share = 6 parts = 6 × 5,000 = ₹30,000
⇒ C's share = 1 part = 1 × 5,000 = ₹5,000
Verification:
⇒ Total profit = 25,000 + 30,000 + 5,000 = ₹60,000
⇒ A : B : C = 25,000 : 30,000 : 5,000 = 5 : 6 : 1
∴ The correct answer is B's profit share = ₹30,000.

Additional Information
Partnership — Joining Mid-Way Rule
When partners join at different times always calculate duration from the month they joined to the end of the business period. Duration of A = total period | Duration of B = total − months after start B joined | Duration of C = total − months after start C joined. Never use the gap between partners as duration.
Sleeping Partner vs Active Partner
A sleeping (silent) partner only invests money — no active role. An active (working) partner gets a salary or commission from total profit first before dividing remainder in Capital × Time ratio. If the problem states one partner manages the business, deduct their salary from total profit first then split remaining profit.
Finding Total Profit from One Partner's Share
If one partner's share and ratio part are known: 1 part = known share ÷ that partner's ratio part. Total profit = 1 part × total ratio parts. Here: 1 part = 25000/5 = 5000 | Total = 5000 × 12 = ₹60,000. This unitary method avoids setting up equations and is the fastest approach.
Withdrawal of Capital Mid-Way
If a partner withdraws or adds capital during the period, split their investment into two parts: before and after the change. Example: A invests ₹10,000 for 6 months then adds ₹5,000 more for remaining 6 months ⇒ A's effective capital = 10,000×6 + 15,000×6 = 60,000 + 90,000 = 1,50,000. Use this as Capital × Time for A.