Shortcut Trick
Profit ratio is directly proportional to Equivalent Capital (Capital × Time).
Kapil's equivalent capital = (10 × 6) + (6 × 6) = 60 + 36 = 96 units
Manish's equivalent capital = 8 × 9 = 72 units
Profit Ratio = 96 : 72 = 4 : 3
∴ The correct answer is 4:3.
Alternate Method
Given:
Kapil's initial investment = ₹1,00,000
Manish's investment after 3 months = ₹80,000
Kapil withdrew ₹40,000 after 3 more months (i.e., at the end of 6 months).
Formula Used:
Profit Ratio = (Capital1 × Time1) : (Capital2 × Time2)
₹1,00,000 × 6m
₹60,000 × 6m
Kapil
₹80,000 × 9m
Manish
0m
3m
6m
12m
Profit Ratio = (100k × 6 + 60k × 6) : (80k × 9) = 960 : 720 = 4:3
Calculations:
⇒ Kapil invested ₹1,00,000 for the first 6 months.
⇒ After 6 months, his capital becomes = ₹1,00,000 − ₹40,000 = ₹60,000.
⇒ Kapil invested ₹60,000 for the remaining 6 months of the year.
⇒ Kapil's equivalent capital = (1,00,000 × 6) + (60,000 × 6)
⇒ Kapil's equivalent capital = 6,00,000 + 3,60,000 = 9,60,000
⇒ Manish joined after 3 months, so his money was invested for (12 − 3) = 9 months.
⇒ Manish's equivalent capital = 80,000 × 9 = 7,20,000
⇒ Profit Ratio = Kapil's equivalent capital : Manish's equivalent capital
⇒ Profit Ratio = 9,60,000 : 7,20,000
⇒ Profit Ratio = 96 : 72 = 4 : 3
∴ The correct answer is 4:3.
Additional Information
Compound Partnership
When partners invest for different time periods or change their capital mid-way, profit is distributed based on the product of Capital and Time (Equivalent Capital).
Simple Partnership
When all partners invest their capital for the exact same time period, the profit is divided purely in the ratio of their invested capitals.
Working vs Sleeping Partner
A working partner actively manages the business and usually receives a fixed salary or commission from the profit before the remaining profit is divided among all partners based on investment.