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A Starts Business with Rs. 3500 and After 5 Months, B Joins with A as His Partner. After a Year, the Profit is Divided in the Ratio 2:3. What is B’s Contribution in the Capital?

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Explanation

A starts business with Rs. 3500.

After 5 months, B joins with A as his partner.

A’s total investment for 12 months (12 x 3500 = 42000) is 42000.

Supposing B start business with Rs. “y”; so B’s total investment for 7 months (y x 7) will be 7y.

As profit is divided among partners according to their ratio of investment.

42000/7y = 2/3

Through this equation; we can easily find out B’s contribution in the capital.

To Find

B’s contribution in the capital = ?

Solution

Let suppose;

  • Initial investment of B = y
  • Initial investment of A = 3500
  • B’s investment for 7 months = 7y
  • A’s investment for 1 year = 12 x 3500 = 42000

Now; Investment ratio = Profit ratio

42000/7y = 2/3

7y x 2 = 42000 x 3

14y = 126000

y = Rs. 9000 answer

Conclusion

A starts business with Rs. 3500 and after 5 months, B joins with A as his partner. After a year, the profit is divided in the ratio 2:3. B’s contribution in the capital is Rs. 9000.

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