Question
'A' invested Rs. 9,000 in a business. After 5 months, 'A' reduced the investment by Rs. 2,000 and 'B' joined with Rs. 12,000. At the end of 20 months from the beginning, if 'A’s share of the profit was Rs. 10,200, what was 'B’s share?
Solution
ATQ,
Effective investment of A = (9000 × 5) + (7000 × 15)
Effective investment of B = 12000 × 15
Now,
Profit sharing ratio of A : B = (9000×5 + 7000×15) : (12000×15)
= (45000 + 105000) : 180000
= 150000 : 180000
= 5 : 6
So, B’s profit share = (6/5) × 10200 = Rs.12,240
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