Shortcut Trick
Ratio of Profit = (CapitalA × TimeA) : (CapitalB × TimeB)
Profit Ratio = [(48 × 6) + (24 × 6)] : [(72 × 6) + (96 × 6)]
Profit Ratio = [6 × (48 + 24)] : [6 × (72 + 96)] = 72 : 168 = 3 : 7
B's share = (7 ÷ 10) × 55000 = ₹38,500
∴ The correct answer is ₹38,500.
Alternate Method
Given:
Initial capital of A = ₹48,000
Initial capital of B = ₹72,000
Total time of investment = 1 year = 12 months
Total profit earned at the end of the year = ₹55,000
A
₹48k × 6m
₹24k × 6m
= 432k
B
₹72k × 6m
₹96k × 6m
= 1008k
Profit Ratio (A : B) = 432 : 1008 = 3 : 7
Formula Used:
Profit Ratio = Product of Capital and Time Period = C1T1 : C2T2
Calculations:
⇒ Equivalent capital of A = (₹48,000 × 6 months) + (₹24,000 × 6 months)
⇒ Equivalent capital of A = ₹2,88,000 + ₹1,44,000 = ₹4,32,000
⇒ Equivalent capital of B = (₹72,000 × 6 months) + (₹96,000 × 6 months)
⇒ Equivalent capital of B = ₹4,32,000 + ₹5,76,000 = ₹10,08,000
⇒ Ratio of profit (A : B) = 4,32,000 : 10,08,000
⇒ Ratio of profit (A : B) = 432 : 1008 = 3 : 7
⇒ Sum of ratio parts = 3 + 7 = 10 parts
⇒ B's share in profit = (7 ÷ 10) × Total Profit
⇒ B's share = (7 ÷ 10) × 55,000
⇒ B's share = 7 × 5,500 = ₹38,500
∴ The correct answer is ₹38,500.
Additional Information
Partnership Profit Ratio
When investments are made for unequal time periods, the profit is distributed in the ratio of the product of capital and corresponding time period: C1T1 : C2T2 : C3T3.
Sleeping vs Working Partner
A working partner manages the business and usually receives a fixed salary or a certain percentage of the total profit before the remaining profit is distributed according to capital ratios.
Joining Mid-Way
If a partner joins x months after the start of a year, their investment time period is taken as (12 − x) months when calculating the effective capital for profit distribution.