Riya, Kabir, and Sana start a business together. Riya invests ₹13500 for 8 months, Kabir invests ₹21000 for 6 months, and Sana invests ₹18000 for 12 months. At the end of the year, they earn a total profit of ₹12,600. What is Kabir's share of the profit (in ₹)?
- AOption (a)
₹3,528
- BOption (b)
₹4,030
- COption (c)
₹3,722
- DOption (d)
₹4,285
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Correct answer
₹3,528
Why this answer is correct
Shortcut Trick
Ratio of Profit = (Investment × Time)
Riya : Kabir : Sana = (13500 × 8) : (21000 × 6) : (18000 × 12)
Riya : Kabir : Sana = 108 : 126 : 216 = 6 : 7 : 12
Total units = 6 + 7 + 12 = 25 units → ₹12,600
Kabir's share (7 units) = (12600 ÷ 25) × 7 = 504 × 7 = ₹3,528
∴ The correct answer is ₹3,528.
Alternate Method
Given:
Riya's investment (CR) = ₹13,500, Time (TR) = 8 months
Kabir's investment (CK) = ₹21,000, Time (TK) = 6 months
Sana's investment (CS) = ₹18,000, Time (TS) = 12 months
Total Profit = ₹12,600
Formula Used: Profit Ratio = (C1 × T1) : (C2 × T2) : (C3 × T3)
Calculations:
⇒ Riya's Profit Share : Kabir's Profit Share : Sana's Profit Share
⇒ (13500 × 8) : (21000 × 6) : (18000 × 12)
⇒ 108000 : 126000 : 216000
⇒ 108 : 126 : 216
⇒ 6 : 7 : 12 (Dividing by 18)
⇒ Total Ratio = 6 + 7 + 12 = 25 units
⇒ 25 units = ₹12,600
⇒ 1 unit = 12600 ÷ 25 = ₹504
⇒ Kabir's share = 7 units = 7 × 504 = ₹3,528
∴ The correct answer is ₹3,528.
Additional Information
Partnership Profit Sharing Rule
Profit is distributed in the ratio of the product of Capital and Time. P1 : P2 = (C1 × T1) : (C2 × T2).
Active vs Sleeping Partner
An Active partner manages the business and may receive a salary or extra profit %, while a Sleeping partner only provides capital.
Variable Time Investment
If a partner changes investment mid-way, calculate total investment as: (C1 × T1) + (C2 × T2) for that partner.