In a partnership business A contributes Rs.1200 for 5 months and B Rs.750 for 4 months. If there is a profit of Rs.450, then ratio of the profit of A & B is?
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The ratio of profit of A and B is 2:1
Given:
Contribution of A, C₁ = Rs. 1200
Contribution of B, C₂ = Rs. 750
Time period of A, t₁ = 5 months
Time period of B, t₂ = 4 months
Profit, P = Rs. 450
Find:
Ratio of the profit of A and B.
Solution:
Profit share of A is given by,
P₁ = (C₁×t₁×P)/(C₁t₁ + C₂t₂)
P₁ = (1200×5×450)/(1200×5 + 750×4)
P₁ = 2700000/(6000 + 3000)
P₁ = 2700000/9000
P₁ = Rs. 300
Similarly, profit share of B is given by,
P₂ = (C₂×t₂×P)/(C₁t₁ + C₂t₂)
P₂ = (750×4×450)/(1200×5 + 750×4)
P₂ = 1350000/(6000 + 3000)
P₂ = 1350000/9000
P₂ = Rs. 150
Required ratio, P₁ : P₂ = 300/150
= 2 : 1
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