Raman started a business with Rs. 8,00,000 and is joined afterwards by Dev with Rs. 12,00,000. After how many months did Dev join the business if the profit at the end of a year is divided equally ?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 4 months
Profits are shared in the ratio of capital × time. Let Dev join after x months, so his money is in the business for 12 − x months.
Equal shares mean equal capital × time:
\(8,00,000 \times 12 = 12,00,000 \times (12-x)\)
\(96 = 12(12-x)\)
\(12-x = 8,\quad x = 4\)
So Dev joined after 4 months.