Question

fit < 13,400) 3. A is a sole proprietor, who starts his business with a capital of 28,000 on 1st January, 2012. After six months he forms a partnership and continues the business with B as a partner, who introduces 28,000 as capital. The profit earned during the year 2012 was * 18,000. Distribute profit between A and B, if they agree to share profit in the ratio of their capital.
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Answer 1

A and B will have 9,000 shares in the profit.

GIVEN: Capital of A = 28,000, Capital of B = 28,000, Profit of the year = 18,00

TO FIND: Profit between the two partners

SOLUTION:

A's Capital is employed for the year, whereas B's capital is employed for six months.

The question is being solved on the assumption that the Calendar year is being followed.

As they are going to share the profit in their capital share.

So, their future share will be 1:1.

Share of A = 9,000

Share of B = 9,000

The profit shared by A and B is 9,000 respectively.

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Answer 2

The profit shared by A is 9000 and B is 9,000.

GIVEN:- Capital of A is 28,000, Capital of B is 28,000 and Profit of the year is 18,000

TO FIND:- Distribute profit between A and B

SOLUTION:-

• A's Capital is utilized for the year, whereas B's capital is utilized for six months.
• The assumption that needs to be taken to solve this question is that the Calendar year is being followed.

As they are getting on to share the profit in their capital share.

Thus, their future share will be 1:1.

So, the total profit of 18000 will be equally divided by both A and B

$\frac{18000}{2} = 9000$

Therefore,

• Share of A= 9,000
• Share of B = 9,000

Hence, The profit shared by A is 9000 and B is 9,000.

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