Shortcut Trick
Profit Ratio = 1 : 4 : 5 and Time Ratio = 12 : 8 : 6
Investment Ratio = (Profit ÷ Time) → (1/12) : (4/8) : (5/6)
Multiplying by LCM (24) → 2 : 12 : 20 → 1 : 6 : 10
Given 1 unit (A's capital) = Rs. 54,000
Difference between B and C = 10 − 6 = 4 units = 4 × 54,000
∴ The correct answer is Rs. 2,16,000.
Alternate Method
Given:
A's Capital (CA) = Rs. 54,000
A's Time (TA) = 12 months
B's Time (TB) = 12 − 4 = 8 months
C's Time (TC) = 12 − 6 = 6 months
Profit Ratio (PA : PB : PC) = 1 : 4 : 5
Formula Used:
Profit = Capital × Time ⇒ Capital = Profit ÷ Time
Calculations:
⇒ CA : CB : CC = (PA / TA) : (PB / TB) : (PC / TC)
⇒ CA : CB : CC = (1 / 12) : (4 / 8) : (5 / 6)
⇒ CA : CB : CC = (1 / 12) : (1 / 2) : (5 / 6)
⇒ Multiply by LCM of 12, 2, 6 = 12
⇒ CA : CB : CC = 1 : 6 : 10
⇒ Given CA = 1 unit = Rs. 54,000
⇒ CB = 6 units = 6 × 54,000 = Rs. 3,24,000
⇒ CC = 10 units = 10 × 54,000 = Rs. 5,40,000
⇒ Difference = 5,40,000 − 3,24,000 = Rs. 2,16,000
∴ The correct answer is Rs. 2,16,000.
Additional Information
Simple Partnership
When all partners invest their capitals for the same time period, the profit is divided in the ratio of their investments.
Compound Partnership
When capitals are invested for different time periods, the profit is shared in the ratio of the product of (Capital × Time).
Working vs Sleeping Partner
A working partner manages the business and may receive a fixed salary or percentage of profit before the remaining profit is shared among all partners.