P started a software business by investing ₹63,000. After two months, R joined…

2026

P started a software business by investing ₹63,000. After two months, R joined him with a capital of ₹79,000. After 2 years, they earned a profit of ₹58,500. What was P’s share (in ₹, rounded to the nearest integer) in the profit?

Answer: A. 27216ConceptIn a partnership, profit is divided in the ratio of each partner’s capital-time product: invested capital multiplied by the duration for which it…

  1. A.

    27216

  2. B.

    27115

  3. C.

    27188

  4. D.

    27165

Attempted by 15 students.

Show answer & explanation

Correct answer: A

Concept

In a partnership, profit is divided in the ratio of each partner’s capital-time product: invested capital multiplied by the duration for which it remains invested.

When a partner joins later, that partner’s duration is only the remaining part of the total business period.

Application

  1. Convert 2 years to 24 months. P’s capital remains invested for 24 months, while R joins after 2 months and therefore invests for 22 months.

  2. P’s capital-time product = 63,000 × 24 = 1,512,000.

  3. R’s capital-time product = 79,000 × 22 = 1,738,000.

  4. Thus, P : R = 1,512,000 : 1,738,000, and the total capital-time product is 3,250,000.

  5. P’s profit share = 58,500 × (1,512,000 ÷ 3,250,000) = 27,216.

Cross-check

R’s share is ₹58,500 − ₹27,216 = ₹31,284. Also, ₹27,216 : ₹31,284 = 756 : 869, the same reduced ratio as 1,512,000 : 1,738,000.

Result

Therefore, P’s share in the profit is ₹27,216.

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