Partnership Profit Sharing Calculation
The profit in a partnership is distributed based on the ratio of the product of the capital invested and the duration for which it was invested.
Investment Details
- Partner A: Invested ₹15,000 for the entire year (12 months).
- Partner B: Invested ₹20,000 after 2 months, meaning for 10 months (12 - 2 = 10 months).
Calculate Investment Products
We calculate the product of capital and time for each partner:
- A's Investment Product: $15000 \times 12 = 180000$
- B's Investment Product: $20000 \times 10 = 200000$
Determine Profit Ratio
The ratio in which the profit is divided is the ratio of their investment products:
Ratio (A : B) = A's Investment Product : B's Investment Product
Ratio (A : B) = $180000 : 200000$
Simplify the Ratio
Simplify the ratio by dividing both sides by their greatest common divisor (which is 20000):
Ratio (A : B) = $\frac{180000}{20000} : \frac{200000}{20000}$
Ratio (A : B) = $9 : 10$
Therefore, the profit is divided between A and B in the ratio $9 : 10$.
Similar Questions
- Two partners A and B started a business with the capitals of ₹12,000 and ₹18,000 respectively and made a profit of ₹1,800 at the end of the $1^{\text{st}}$ year. Find the profit share of B.
- A, B and C divided the profit in the ratio of 3 : 4 : 5. If their total investment is ₹1,44,000, then B's investment will be:
- Anshuman and Kunal together invested ₹36,400 in a business. At the end of the year, out of a total profit of ₹19,500, Kunal's share was ₹6,300. What was the difference between their investments?
- A company earns a profit (in ₹) that is distributed among the company's three partners in the ratio of 14 : 10 : 16. If the difference between the smallest and the largest shares is ₹29,547, the total profit (in ₹) of the company is:
- M and N started a business. M invested ₹48,000 more than N for 3 months, while N invested for 4 months. M's share is ₹498 more than that of N, out of a total profit of ₹1,494. Find the capital contributed by M.
- M and N start a business. M invests ₹24,000 more than N for 3 months and N invests for 4 months. M's share is ₹962 more than that of N, out of a total profit of ₹7,696. Find the capital contributed by M.
- P, Q and R invest a sum in the ratio of 59 : 14 : 72, respectively. If they earned a total profit of ₹4,790 at the end of the year, what is the difference between the shares of Q and R?
- P, Q and R invested a sum in the ratio of 12 : 82 : 38, respectively. If they earned a total profit of ₹3,510 at the end of year, what is the difference between the shares of Q and R?
A, B and C are partners in a business. A, whose money has been used for 4 months, claims \(\tfrac18\) of the profit. B, whose money has been used for 6 months, claims \(\tfrac13\) of the profit. C had invested ₹ 1560 for 8 months. How much money did A contribute?
A, B, and C start a business by investing ₹60,000, ₹80,000, and ₹1,20,000, respectively. After one year, the total profit earned is ₹78,000. By how much does C’s share exceed B’s share?
Important Questions from Partnership
A, B, C invest Rs. 20000, Rs. 30000, Rs. 40000 in a business. After one year, A withdrew his money but B and C continued for one more year. If the net profit after 2 years be Rs. 32000, then A’s share in the profit is:
Adesh and Bhadresh are partners sharing profits and losses in the ratio of 3 ∶ 2. Chandresh is admitted for 20% of share in profits out of which half of the share was gifted by Adesh and remaining was acquired by Chandresh from Adesh and Bhadresh in equal proportion. What would be new profit-sharing ratio?
Mathur started a business by investing R6,76,000 as capital. After 4 months, Goyal joined the business by investing a capital of Rs. 5,07,000. A total of Rs. 2,60,000 including 25% of the total profit was given to Goyal for conducting business at the end of the year. How much profit Mathur will get?
Mannu and Bhanu are partners. Bhanu wants to admit his son Channu into business. Can Channu become the partner of the firm?
L, S and D are partners sharing profits in the ratio of \(\frac{2}{5},\frac{3}{7}\) and \(\frac{3}{10}\). If S retires from the firm, what will be the gain ratio of L
