Investment Ratio Calculation
The profit is shared among partners based on their investment ratio. First, we find the ratio of investments made by Alex, Ben, and Chris.
Alex's Investment = ₹30,000
Ben's Investment = ₹45,000
Chris's Investment = ₹60,000
Determine Investment Ratio
The ratio of their investments is calculated as follows:
Alex : Ben : Chris = 30,000 : 45,000 : 60,000
Simplify this ratio by dividing each amount by the greatest common divisor (15,000):
Ratio = \(\frac{30,000}{15,000} : \frac{45,000}{15,000} : \frac{60,000}{15,000} = 2 : 3 : 4\)
Calculate Total Ratio Parts
The sum of the ratio parts indicates the total number of shares in the profit distribution.
Total Parts = \(2 + 3 + 4 = 9\)
Calculate Alex's Profit Share
Alex's share of the total profit (₹27,000) is determined by his portion of the investment ratio.
Alex's share is calculated using the formula:
Alex's Share = \(\Large\frac{\text{Alex's Ratio Part}}{\text{Total Parts}}\normalsize \times \text{Total Profit}\)
Substitute the values:
Alex's Share = \(\frac{2}{9} \times 27,000\)
Perform the calculation:
Alex's Share = \(2 \times \frac{27,000}{9}\)
Alex's Share = \(2 \times 3,000\)
Alex's Share = ₹6,000
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:
