A starts a business with ₹75,000 and B joins the business 5 months later with an investment of ₹80,000. After 1 year, they earn a profit of ₹4,08,800. Find the share of A and B (in ₹).
2,52,000 and 1,56,800
Given:
Initial investment by A = ₹75,000
B joins after 5 months with an investment of ₹80,000
Total profit after 1 year = ₹4,08,800
Concept Used:
Profit share ∝ (Investment × Time Period)
Calculation:
Capital-time of A = ₹75,000 × 12 months = ₹9,00,000 months
Capital-time of B = ₹80,000 × 7 months = ₹5,60,000 months
Ratio of capital-time of A and B
⇒ A : B = ₹9,00,000 : ₹5,60,000
⇒ A : B = 90 : 56
⇒ A : B = 45 : 28
According to the ratio, share of total profit:
⇒ A's share = (45/(45+28)) × ₹4,08,800 = ₹2,52,000
⇒ B's share = (28/(45+28)) × ₹4,08,800 = ₹1,56,800
∴ A's share = ₹2,52,000 and B's share = ₹1,56,800
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