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A started a business with a capital of Rs. 100000. 1 year later, B joined him with a capital of Rs. 200000. At the end of 3 year from the start of the business, the profit earned was Rs. 84000. The share of B in the profit exceeded the share of A by

Question

A started a business with a capital of Rs. 100000. 1 year later, B joined him with a capital of Rs. 200000. At the end of 3 year from the start of the business, the profit earned was Rs. 84000. The share of B in the profit exceeded the share of A by

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Solution

The profit is divided in the ratio of the capital invested and the time for which the capital was invested.

  1. A's capital was invested for 3 years and B's capital was invested for 2 years.

  2. The ratio of A's investment to B's investment is therefore (1000003) : (2000002) = 300000 : 400000 = 3 : 4.

  3. The total profit of Rs. 84000 is divided in this ratio. So, A's share of the profit is (3/7)*84000 = Rs. 36000 and B's share of the profit is (4/7)*84000 = Rs. 48000.

  4. Therefore, B's share of the profit exceeded A's share by Rs. 48000 - Rs. 36000 = Rs. 12000.

This problem has been solved

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