Question

14. A starts business with * 4,000. After 3 months B joins him with * 6,000
and becomes his partner and again after 3 months C also joins him with
* 10,000. The year's profit is * 5,400. How the amount of profit will be
distributed ?

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Answer 1

Answer:

See, it depends upon what the question has further specified.

Explanation:

Normally, we assume that if no ratio is given the profits or losses are distributed in equal ratio.

So, 5400 will be distributed as 5400÷3 i.e 1800 to each partner.

If the question says that the profits are to be distributed in the ratio of their capitals, then we will follow the same.

In that case the answer will be:

Ratio of capitals is 4:6:10 or 2:3:5

So the profits will be:

A= 5400/10*2= 1080

B=5400/10*3=1620

C=5400/10*5=2700