9. A and B commenced a business and agreed to share future profits as per the effective capital
ratio. A investa 15,000 and at the end of 8 months 5,000 more. But B invests 7,500 and at
the end of 4 months 12,500 more but withdraws* 7,500 at the end of 6 months more. At the
Ans. I 2.600 each)
end of the year the profit they got was 4,725. Find their shares.
Ans. (A2,620, B = 2,205]
ham future profits as per effective capital
Answers
Solution :-
→ A = 15000 for 8 months + 20000 for 4 months .
→ B = 7500 for 4 months + (12500 + 7500) for 2 months + (12500 + 7500 - 7500) for 6 months .
So,
→ Ratio of Profit of A and B = (15000 * 8 + 20000 * 4) : (7500 * 4 + 20000 * 2 + 12500 * 6) = (120000 + 80000) : (30000 + 40000 + 75000) = 200000 : 145000 = 200 : 145 = 40 : 29 .
Now, Let us assume that, share of profit of A and B was 40x and 29x .
then,
→ Total share = 40x + 29x = 69x .
therefore,
→ 69x = 4725(given)
→ x = 4725/69 = 68.47
Hence,
→ Profit share of A = 40x = 40 * 68.47 = Rs.2738.8 .
→ Profit share of B = 29x = 29 * 68.47 = Rs.1985.6 .
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Ratio = 2,00,000 : 1,75,000
= 8:7
Profit = ₹4,725
A's Capital = 8/15 × 4,725 = 2,520
B's Capital = 7/15 × 4,725 = 2,205
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