A started a business with ₹70000. After 4 months, B joined him with an investment of ₹80000. What will be B's share (in ₹) in the annual profit of ₹33300?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 14400
In a partnership the profit is shared in the ratio of capital × time for which it was invested. B joined after 4 months, so his money worked for only 8 months of the year.
A’s capital for 12 months: \(70000\times12=840000\)
B’s capital for 8 months: \(80000\times8=640000\)
Profit-sharing ratio A : B \(=840000:640000=21:16\)
B’s share \(\displaystyle =33300\times\frac{16}{37}=900\times16=14400\)