Question
K and L invested Rs. 3200 and Rs. 2800 respectively.
After 6 months, L increases his investment by Rs. 1200. If the total profit for the year is Rs. 2310, find the difference between K’s and L’s profit shares.Solution
ATQ,
K’s time-weighted capital = 3200 × 12 = 38400 L’s time-weighted capital = (2800 × 6) + (2800 + 1200) × 6 = 16800 + 4000 × 6 = 16800 + 24000 = 40800 Ratio (K : L) = 38400 : 40800 = 16 : 17 Difference = 2310 × (17 − 16) / (16 + 17) = 2310 × 1/33 = Rs. 70
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