A, B, and C started a business. A invested Rs. 1,20,000, B invested Rs. 80,000, and C invested Rs. 1,00,000. After 6 months, A added Rs. 20,000, and C withdrew Rs. 10,000. If the total profit at the end of 2 years is Rs. 3,60,000, how much will A receive?
₹1,58,049
In a partnership, each partner's share of the profit is proportional to the product of the capital invested and the length of time that capital stayed in the business, measured in capital-months.
The whole venture runs for 2 years, that is 24 months, but A's and C's capitals change after the first 6 months, so each of their contributions splits into two time-blocks.
A invests Rs 1,20,000 for 6 months, then Rs 1,40,000 for the remaining 18 months: \(120000 \times 6 + 140000 \times 18 = 720000 + 2520000 = 3240000\).
B keeps Rs 80,000 for all 24 months: \(80000 \times 24 = 1920000\); C invests Rs 1,00,000 for 6 months then Rs 90,000 for 18 months: \(100000 \times 6 + 90000 \times 18 = 600000 + 1620000 = 2220000\).
The capital-months therefore stand in the ratio \(3240000 : 1920000 : 2220000\), whose total is \(7380000\).
A's share of the Rs 3,60,000 profit is his fraction of that total: \(\frac{3240000}{7380000} \times 360000 \approx 158049\).
The key idea is to weight each rupee by the time it worked, split the changed investments into blocks, and then divide the profit in that ratio.
Hence A receives ₹1,58,049.
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