A starts a business with ₹75,000 and B joins the business 5 months later with an investment of ₹80,000. After 1 year, they earn a profit of ₹4,08,800. Find the share of A and B (in ₹).

Question

Question

This question was previously asked in

SSC CGL (2022) Tier-II Official Paper (Held On : 7 March 2023)

Answer 1

Given:

Initial investment by A = ₹75,000

B joins 5 months later with an investment = ₹80,000

Total profit after 1 year = ₹4,08,800

Concept Used:

Profit shares ∝ (Investment × Time Period)

Calculations:

A's Capital-Time = ₹75,000 × 12 months = ₹9,00,000 months

B's Capital-Time = ₹80,000 × 7 months = ₹5,60,000 months

Ratio of A's and B's capital-time:

⇒ A : B = ₹9,00,000 : ₹5,60,000

⇒ A : B = 90 : 56

⇒ A : B = 45 : 28

Share of total profit according to ratio:

⇒ A's share = (45/(45+28)) × ₹4,08,800 = ₹2,52,000

⇒ B's share = (28/(45+28)) × ₹4,08,800 = ₹1,56,800

∴ A's share = ₹2,52,000 and B's share = ₹1,56,800.