Question
M and N began a business with Rs. 2500 and Rs. 3500.
After 4 months, M increases his contribution by Rs. 1000. If the total profit after 12 months is Rs. 2000, what is the difference between their shares?Solution
ATQ,
M’s time-weighted capital = (2500 × 4) + (2500 + 1000) × 8 = 10000 + 3500 × 8 = 10000 + 28000 = 38000 N’s time-weighted capital = 3500 × 12 = 42000 Ratio (M : N) = 38000 : 42000 = 19 : 21 Difference = 2000 × (21 − 19) / (19 + 21) = 2000 × 2/40 = Rs. 100
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