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Question 10
A started a business with Rs. 50000. After three months, B joins with an investment of Rs. 60000 and A withdraws Rs. 10000 out of his capital. Three months later, B brought in Rs. 20000 more. At the end of the year, what should be the ratio in which they A and B share the profits?
Solution
Profit share = Investment * Time period
Now we get ratio of profit of A and B :
$$\frac{50,000\times\ 3\ +\ 40,000\times\ 9}{60,000\times\ 3\ +\ 80,000\times\ 6}$$
we get ratio as $$\frac{510}{660\ }=\ \frac{17}{22}$$
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