Given:
Initial investment by A on 1st January = ₹40,000
Initial investment by B on 1st January = ₹60,000
Additional investment by A on 1st March = ₹20,000
Withdrawal by B on 1st June = ₹10,000
Total profit till 31st December = ₹33,250
Formula Used:
Profit share = (Investment by partner × Time period) / Sum of (Investment × Time period for all partners)
Calculation:
Investment by A:
From 1st Jan to 1st Mar (2 months): ₹40,000
From 1st Mar to 31st Dec (10 months): ₹40,000 + ₹20,000 = ₹60,000
Investment by B:
From 1st Jan to 1st Jun (5 months): ₹60,000
From 1st Jun to 31st Dec (7 months): ₹60,000 - ₹10,000 = ₹50,000
Total investment by A:
₹40,000 × 2 + ₹60,000 × 10
⇒ ₹80,000 + ₹600,000
⇒ ₹680,000
Total investment by B:
₹60,000 × 5 + ₹50,000 × 7
⇒ ₹300,000 + ₹350,000
⇒ ₹650,000
Sum of investments:
₹680,000 + ₹650,000
⇒ ₹1,330,000
B's share in profit:
\(\left( \frac{\text{B's investment} \times \text{Total profit}}{\text{Total investment}} \right)\)
\(\left( \frac{650,000 \times 33,250}{1,330,000} \right)\)
⇒ \(\left( \frac{21,612,500}{1,330,000} \right)\)
⇒ ₹16,250
The share of B in the profit is ₹16,250.