Shortcut Trick
Ratio of Investment × Time equals the Profit Ratio.
For A and B: (20,000 × t) ÷ (30,000 × (t − 4)) = 2 ÷ 2.
Simplified: 2t ÷ 3(t − 4) = 1 ⇒ 2t = 3t − 12 ⇒ t = 12 months.
Time for B = t − 4 = 12 − 4 = 8 months.
Time for C = (t − 4) − 2 = 8 − 2 = 6 months.
∴ The correct answer is 12, 8 and 6 months.
Alternate Method
Given: Investments of A, B, and C are Rs. 20,000, Rs. 30,000, and Rs. 60,000. Profit ratio is 2 : 2 : 3.
Formula: Profit Ratio = (I1 × T1) : (I2 × T2) : (I3 × T3)
⇒ Let time for A be t. Then B is t − 4 and C is (t − 4) − 2 = t − 6.
⇒ Ratio of Profit (A:B) = (20,000 × t) : (30,000 × (t − 4)) = 2 : 2.
⇒ 2t ÷ (3t − 12) = 1 ⇒ 2t = 3t − 12 ⇒ t = 12.
⇒ Time for A = 12 months, B = 8 months, C = 6 months.
⇒ Check with C: (30,000 × 8) : (60,000 × 6) = 240,000 : 360,000 = 2 : 3 (Matches).
∴ The correct answer is 12, 8 and 6 months.
Additional Information
Partnership Ratios
In a partnership, profit is distributed based on the product of Capital and Time. If capitals are C1, C2 and times are T1, T2, then Profit Ratio P1:P2 = C1T1 : C2T2.
Time Calculation
If profit ratios and capitals are known, Time ratio can be found using T = P ÷ C.