A and B began business with Rs. 3000 and Rs. 4000. After 8 months, A withdraws…

2025

A and B began business with Rs. 3000 and Rs. 4000. After 8 months, A withdraws Rs. 1000 and B advances Rs. 1000 more. At the end of the year, their profits amounted to Rs. 630. Find the share of A.

Answer: A. Rs. 240In a partnership where a partner's capital changes during the year, profit is not shared in the simple ratio of the initial capitals -- it is shared in the…

  1. A.

    Rs. 240

  2. B.

    Rs. 75

  3. C.

    Rs. 125

  4. D.

    Rs. 354

Attempted by 2 students.

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Correct answer: A

In a partnership where a partner's capital changes during the year, profit is not shared in the simple ratio of the initial capitals -- it is shared in the ratio of each partner's equivalent (time-weighted) capital, found by multiplying the capital invested by the number of months it stayed invested, and summing this across every period of the year.

  1. A invests Rs. 3000 for the first 8 months, then withdraws Rs. 1000, leaving Rs. 2000 invested for the remaining 4 months of the year.

  2. A's equivalent capital = (3000 x 8) + (2000 x 4) = 24000 + 8000 = 32000.

  3. B invests Rs. 4000 for the first 8 months, then advances Rs. 1000 more, taking the investment to Rs. 5000 for the remaining 4 months.

  4. B's equivalent capital = (4000 x 8) + (5000 x 4) = 32000 + 20000 = 52000.

  5. The profit-sharing ratio of A to B is 32000 : 52000, which simplifies to 8 : 13.

  6. A's share of the total profit of Rs. 630 = 630 x 8 / (8 + 13) = 630 x 8 / 21 = Rs. 240.

Cross-check: B's share = 630 x 13 / 21 = Rs. 390, and Rs. 240 + Rs. 390 = Rs. 630, which equals the total profit -- confirming the split is correct.

Therefore, A's share of the profit is Rs. 240.

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