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
- P, Q and R started a business investing amounts of ₹2,030, ₹1,700, and ₹1,010, respectively. If Q's share in the profit earned by them is ₹975. what is the difference in the profit (in ₹) earned by P and R?
- 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?
- 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?
- 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?
- Ritu, Sameer, and Isha invest ₹1,190, ₹1,060, and ₹1,350, respectively, to start a business. If the profit at the end of the year is ₹1,640, then what is the share of Isha in the profit?
- Salman and Vivek together invested ₹33,900 in a business. At the end of the year, out of a total profit of ₹10,000, Vivek's share was ₹3,700. 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.
- 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.
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:
