Profit Sharing Calculation for Business Partnership
This problem requires calculating the profit shares based on investment amounts and the duration each partner was involved in the business. The profit is then distributed according to these calculated shares.
Determining Investment-Time Ratios
Profit sharing is determined by the product of the amount invested and the duration of the investment (in months). A and B invested for the full year (12 months), while C joined after 4 months, meaning C invested for \(12 - 4 = 8\) months.
- A's Contribution: \(₹45,000 \times 12 \text{ months} = ₹540,000\).
- B's Contribution: \(₹60,000 \times 12 \text{ months} = ₹720,000\).
- C's Contribution: \(₹75,000 \times 8 \text{ months} = ₹600,000\).
The ratio of their profit shares is the ratio of these contribution amounts:
A : B : C = \(540,000 : 720,000 : 600,000\)
To simplify, we can divide all parts by \(10,000\): \(54 : 72 : 60\).
Further simplifying by dividing by \(6\) (the greatest common divisor):
A : B : C = \(9 : 12 : 10\)
Calculating Individual Profit Shares
The total profit is \(₹62,000\). The sum of the ratio parts is \(9 + 12 + 10 = 31\).
This means each ratio part represents \(₹\frac{62,000}{31} = ₹2,000\) of the profit.
- B's Profit Share: \(12 \text{ parts} \times ₹2,000/\text{part} = ₹24,000\).
- C's Profit Share: \(10 \text{ parts} \times ₹2,000/\text{part} = ₹20,000\).
Finding the Profit Difference Between B and C
The question asks for the difference between B's and C's profit shares.
Difference = B's Share - C's Share
Difference = \(₹24,000 - ₹20,000 = ₹4,000\).
The difference between the shares of B and C in the profit is \(₹4,000\).
Similar Questions
- A and B start a business by investing ₹40,000 and ₹60,000, respectively. At the end of the year, they earn a profit of ₹20,000. How much profit will A receive?
- Two partners M and N buy a car. M pays his share of $\frac{3}{7}$th of the total cost of the car. M pays ₹ 31,540 less than N. What is the cost of the car?
Important Questions from Partnership
A, B and C invest in a business in the ratio 4 ∶ 5 ∶ 7. C is a sleeping partner, so his share of profits will be half of what it would have been if he were a working partner. If they make Rs 36,000 profit of which 25% is reinvested in the business, how much does B get (in Rs)?
Sumit, Ravi and Puneet invest Rs. 45000, Rs. 81000 and Rs. 90000 respectively to start a business. At the end of the year the total profit is Rs. 4800. 30% of the total profit gives in charity and rest is divided among them. What will be the share of Sumit?
A sum of ₹ 159250 is divided among A, B, C, and D such that the ratio of the shares of A and B is 1 : 3, that of B and C is 2 : 5, and that of C and D is 2 : 3. The share (in ₹) of A is:
A and B start a business by investing Rs. 1,00,000 and Rs. 1,50,000 respectively. Find the respective share of each out of a total profit of Rs. 24, 000.
Two partners A and B have started business with the capitals of Rs. 6,000 and Rs. 8,000 respectively. If they made profit of Rs. 5,600 then the share (in Rs.) of A is:
