Shortcut Trick
We know that, Profit Ratio = Ratio of Equivalent Capital (Investment × Time).
Profit of P / Profit of Q = (P's Capital × P's Time) / (Q's Capital × Q's Time)
3 / 5 = (4 × 21) / (7 × Q's Time)
3 / 5 = 12 / Q's Time ⇒ Q's Time = (12 × 5) / 3 = 20
∴ The correct answer is 20 months.
Alternate Method
Given:
Investment ratio of P : Q = 4 : 7
P's investment period = 21 months
Profit ratio of P : Q = 3 : 5
Formula Used:
Profit Ratio = (Capital of A × Time of A) : (Capital of B × Time of B)
Calculation:
Let the investments of P and Q be 4x and 7x respectively.
Let Q's investment period be t months.
⇒ Profit of P / Profit of Q = (4x × 21) / (7x × t)
⇒ 3 / 5 = 84x / 7xt
⇒ 3 / 5 = 12 / t
⇒ 3 × t = 12 × 5
⇒ 3t = 60
⇒ t = 20
∴ The correct answer is 20 months.
Additional Information
Basic Principle of Partnership
In a partnership, the profit is distributed in proportion to the product of capital invested and the time period of investment. Hence, Profit = Capital × Time.
Active and Sleeping Partners
An active partner actively manages the business and usually receives a fixed salary or a specific percentage of profit for their effort, while the remaining profit is distributed according to capital investments.
Joining Mid-Way
If a business runs for a specific period (e.g., 12 months) and a partner joins after 'x' months, their capital is considered invested only for the remaining time, i.e., (12 − x) months.