Question

Aravind and ramesh are two partners in a business. Aravind contributes rs 1200 for 5 months, and ramesh contributes rs 750 for 4 months. If total profit is rs 450, find their respective shares in profit.

Answer 1

ANSWER

SAPOSE

Ram's capital is for 5 months = 10000×5 =Rs.50000

Raghul's capital is for12 months = 6000×12 =Rs.72000

Ratio of profit = 50000 : 72000 = 50 : 72 = 25 : 36

Total profit is Rs.220

Rahul's share = 1220×3661

= 20×36 =Rs.720

Answer 2

Answer:

The profits shared by Aravind and Ramesh are 300 and 150 respectively.

Step-by-step explanation:

Assuming the profit will be shared on the basis of capital contribution

Formula : Capital contribution = monthly contribution * months

Aravind's capital contribution = 1,200 * 5 = 6,000

Ramesh's capital contribution = 750 * 4 = 3,000

Aravind: Ramesh = 6,000:3,000 = 2:1

Profits = Rs. 450

Ramesh's share $=\frac{1}{3} *450 = 150$

Aravind's Share $=\frac{2}{3} * 450 = 300$

Definition:

Profit sharing ratio:

• The new profit sharing ratio is the ratio in which the existing and new partners concur to split the profit and loss proportion in the future following the addition of the new partner.

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