A and B started a business in partnership investing Rs. 20,000 and Rs. 15,000 respectively. After six months, C joined them with Rs. 20,000. What will be B's share in total profit of Rs. 25,000 earned at the end of 2 years from the starting of the business?
Question
A and B started a business in partnership investing Rs. 20,000 and Rs. 15,000 respectively. After six months, C joined them with Rs. 20,000. What will be B's share in total profit of Rs. 25,000 earned at the end of 2 years from the starting of the business?
Solution
The profit in a partnership is divided according to the capital invested and the time period for which the capital was invested.
Step 1: Calculate the capital for the time period it was invested.
For A: A invested Rs. 20,000 for 2 years. So, his capital time period will be 20000*24 = 480000 (since 2 years = 24 months)
For B: B invested Rs. 15,000 for 2 years. So, his capital time period will be 15000*24 = 360000
For C: C invested Rs. 20,000 but he joined after 6 months. So, he invested for 1.5 years = 18 months. So, his capital time period will be 20000*18 = 360000
Step 2: Calculate the total capital time period.
Total = 480000 (A's capital time period) + 360000 (B's capital time period) + 360000 (C's capital time period) = 1200000
Step 3: Calculate B's share in the profit.
B's share = (B's capital time period / Total capital time period) * Total profit
B's share = (360000 / 1200000) * 25000 = Rs. 7500
So, B's share in the total profit of Rs. 25,000 earned at the end of 2 years from the starting of the business will be Rs. 7500.
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