A started a software business by investing ₹21000. After three months, B…

2026

A started a software business by investing ₹21000. After three months, B joined him with a capital of ₹32000. After 4 years, they earned a profit of ₹40800. What was A's share (in ₹, rounded off to the nearest integer) in the profit?

Answer: C. 16800Concept: In a partnership, profit is never divided by capital alone or by time alone. It is divided in the ratio of each partner's capital multiplied by time…

  1. A.

    16704

  2. B.

    16732

  3. C.

    16800

  4. D.

    16746

Attempted by 17 students.

Show answer & explanation

Correct answer: C

Concept: In a partnership, profit is never divided by capital alone or by time alone. It is divided in the ratio of each partner's capital multiplied by time — the money a partner puts in, multiplied by the number of months it stays in the business.

For two partners, the profit is shared in the ratio of their capital-and-time products:

C1t1 : C2t2

Applying it here:

Partner

Capital (₹)

Months invested

Capital × Months

A

21000

48

10,08,000

B

32000

45

14,40,000

  1. The business runs for 4 years, that is 4 × 12 = 48 months, and A's ₹21000 stays in it for all 48 months.

  2. B joins three months after the start, so B's ₹32000 stays in the business for 48 − 3 = 45 months.

  3. A's capital × time = 21000 × 48 = 10,08,000.

  4. B's capital × time = 32000 × 45 = 14,40,000.

  5. Profit-sharing ratio = 10,08,000 : 14,40,000 = 1008 : 1440 = 7 : 10, dividing both terms by 144.

  6. Total parts = 7 + 10 = 17, so one part of the profit = 40800 ÷ 17 = ₹2,400.

  7. A's share = 7 × ₹2,400 = ₹16,800.

Cross-check: B's share is 10 × ₹2,400 = ₹24,000, and ₹16,800 + ₹24,000 = ₹40,800, which is the whole profit, so the split is consistent. As a fraction A receives 7/17, about 41.18% of the profit — exactly A's weight in the combined capital-months. The division is exact, so the instruction to round off to the nearest integer changes nothing here.

Common trap: Splitting the profit in the ratio of the capitals alone, 21000 : 32000 = 21 : 32, ignores that B's money worked for three fewer months. Time must be weighted in before the ratio is formed.

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