Question
A and B enter a partnership. A contributed 5000 for 8
months and B 6000 for 5 months. Find A's share in a total profit of 9800.Solution
A contributed 5000 for 8 months, so their contribution to the total capital is: 5000 x 8 = 40000 B contributed 6000 for 5 months, so their contribution to the total capital is: 6000 x 5 = 30000 The total capital contributed by both partners is: 40000 + 30000 = 70000 Now, we can calculate the ratio of profit that will be divided between A and B. This will be based on the ratio of their contributions to the total capital: A's share in the profit = (A's capital contribution / Total capital) x Total profit B's share in the profit = (B's capital contribution / Total capital) x Total profit Substituting the values, we get: A's share in the profit (40000 / 70000) x 9800 =5600
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