Investment Partnership Profit Calculation

This solution explains the calculation for determining B's share of the profit in a business partnership.

Calculating Capital Ratio

The first step is to determine the ratio of the capital invested by partners A and B.

• A's Investment: Rs. 60,000
• B's Investment: Rs. 40,000
• The ratio of their capital investments (A:B) is calculated as:
$ \frac{60,000}{40,000} = \frac{6}{4} = \frac{3}{2} $
• So, the capital ratio is $3:2$.

Profit Distribution Basis

The problem states that a total profit of Rs. 90,000 remains after A receives a 10% management fee. This remaining profit is distributed based on the partners' capital ratio.

• Profit available for distribution based on capital: Rs. 90,000
• The sum of the ratio parts ($3+2$) is 5.

Determining B's Share

B's share is calculated by applying B's portion of the capital ratio to the total distributable profit.

B's share is calculated using the formula:

$ \text{B's Share} = \left( \frac{\text{B's Ratio Part}}{\text{Total Ratio Parts}} \right) \times \text{Profit to be Distributed} $

Substitute the values:

$ \text{B's Share} = \left( \frac{2}{5} \right) \times 90,000 $

Perform the calculation:

$ \text{B's Share} = 2 \times \frac{90,000}{5} $

$ \text{B's Share} = 2 \times 18,000 $

$ \text{B's Share} = 36,000 $

Therefore, B's share of the profit is Rs. 36,000.