Question
Amit and Sara started a business with the investments of
Rs. 20,000 and Rs. 30,000 respectively. After one year, Amit increases his investment by Rs. 5,000 whereas Sara reduces her investment to Rs. 20,000. If at the end of two years, the total profit earned by the business is Rs. 13,800, then find the profit share of Amit.Solution
ATQ, Ratio of profits of Amit to that of Sara = {20,000 X 1 + (20,000 + 5,000) X 1}:{30,000 X 1 + 20,000 X 1} = {20,000 + 25,000}:{30,000 + 20,000} = 45,000:50,000 = 9:10 Required profit share = (9/19) X 13,800 = Rs. 6,540
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