'A' started a business with investment of Rs. 40,000. After 8 months, 'B' joined the business with investment of Rs. 60,000. After further 16 months, 'C' joined the business with investment of Rs. 20,000. At the end of 40 months, if profit share of 'A' is Rs. 25,000, then find the profit share of 'B'.
- AOption (a)
Rs. 36,000
- BOption (b)
Rs. 30,000
- COption (c)
Rs. 28,000
- DOption (d)
Rs. 16,000
- EOption (e)
Rs. 24,000
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Correct answer
Rs. 30,000
Why this answer is correct
Shortcut Trick
A: 40000 ร 40 = 16,00,000 | B: 60000 ร 32 = 19,20,000 | C: 20000 ร 16 = 3,20,000
Ratio = 16 : 19.2 : 3.2 = 160 : 192 : 32 = 5 : 6 : 1
A's share = 5 parts = โน25,000 โ 1 part = โน5,000
B's share = 6 parts = 6 ร 5000 = โน30,000
โด The correct answer is B's profit share = โน30,000.
Alternate Method
Given:
A invested โน40,000 from month 1 โ duration = 40 months
B joined after 8 months โ duration = 40 โ 8 = 32 months | Investment = โน60,000
C joined after 8 + 16 = 24 months โ duration = 40 โ 24 = 16 months | Investment = โน20,000
A's profit share = โน25,000
Find: B's profit share
Formula used:
Profit ratio = Capital ร Time
Each partner's share = (Their ratio part รท Total ratio parts) ร Total Profit
Calculations:
Step 1: Find duration of each partner
โ A invests from month 0 to month 40 โ duration = 40 months
โ B joins at month 8, exits at month 40 โ duration = 40 โ 8 = 32 months
โ C joins at month 8 + 16 = month 24, exits at month 40 โ duration = 40 โ 24 = 16 months
Step 2: Calculate Capital ร Time for each
โ A = 40,000 ร 40 = 16,00,000
โ B = 60,000 ร 32 = 19,20,000
โ C = 20,000 ร 16 = 3,20,000
Step 3: Find profit ratio
โ A : B : C = 16,00,000 : 19,20,000 : 3,20,000
โ Divide by 3,20,000: = 5 : 6 : 1
Step 4: Find profit shares
โ Total parts = 5 + 6 + 1 = 12
โ A's share = 5 parts = โน25,000
โ 1 part = 25,000 รท 5 = โน5,000
โ B's share = 6 parts = 6 ร 5,000 = โน30,000
โ C's share = 1 part = 1 ร 5,000 = โน5,000
Verification:
โ Total profit = 25,000 + 30,000 + 5,000 = โน60,000
โ A : B : C = 25,000 : 30,000 : 5,000 = 5 : 6 : 1ย
โด The correct answer is B's profit share = โน30,000.
Additional Information
Partnership โ 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 โ months after start B joined | Duration of C = total โ 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 โ no active role. An active (working) partner gets a salary or commission from total profit first before dividing remainder in Capital ร 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 รท that partner's ratio part. Total profit = 1 part ร total ratio parts. Here: 1 part = 25000/5 = 5000 | Total = 5000 ร 12 = โน60,000. 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 โน10,000 for 6 months then adds โน5,000 more for remaining 6 months โ A's effective capital = 10,000ร6 + 15,000ร6 = 60,000 + 90,000 = 1,50,000. Use this as Capital ร Time for A.