Anil and Mohan started a business in partnership investing Rs. 25000 /- and…
2024
Anil and Mohan started a business in partnership investing Rs. 25000 /- and Rs. 15000 /- respectively. After six months Kiran joined them with Rs. 21000 /-. What will be Kiran's share in the total profit of Rs. 44600 /- earned at the end of two years from the starting of the business ?
- A.
Rs. 12000
- B.
Rs. 15400
- C.
Rs. 20000
- D.
Rs. 12600
Show answer & explanation
Correct answer: D
Concept: When business partners invest for different lengths of time, profit is shared in the ratio of each partner's capital multiplied by the number of months that capital stayed invested - capital alone is not enough once investment durations differ.
Anil invested Rs. 25,000 for the entire 2 years (24 months) of the business, so his capital-time product is 25000 x 24 = 6,00,000.
Mohan invested Rs. 15,000 for the same full 24 months, giving 15000 x 24 = 3,60,000.
Kiran joined 6 months after the business started, so his Rs. 21,000 was invested for only 24 - 6 = 18 months, giving 21000 x 18 = 3,78,000.
The profit ratio Anil : Mohan : Kiran = 6,00,000 : 3,60,000 : 3,78,000. Dividing every term by 6,000 simplifies this to 100 : 60 : 63, a total of 223 equal parts.
Kiran's share of the ratio is 63 parts out of 223, so his share of the total profit of Rs. 44,600 is (63 / 223) x 44,600 = Rs. 12,600.
Cross-check: the same ratio gives Anil (100/223) x 44,600 = Rs. 20,000 and Mohan (60/223) x 44,600 = Rs. 12,000. Adding all three shares - 20,000 + 12,000 + 12,600 = Rs. 44,600 - exactly reproduces the total profit, confirming Kiran's share of Rs. 12,600 is correct.
