Sohan started a business with a capital of Rs 80,000. After 6 months, Mohan joined as a partner by investing Rs 65,000. At the end of one year they earned a total profit of Rs 20,000. What is Sohan’s share in the profit (approximately)?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs 14,222.2
Profit is shared in the ratio of capital × time. Mohan joined after 6 months, so his money was in the business for only 6 of the 12 months.
Sohan: \(80000\times12=960000\)
Mohan: \(65000\times6=390000\)
Ratio \(=96:39=32:13\), total 45 parts
Sohan’s share \(\displaystyle =\frac{32}{45}\times20000=14222.2\) (approximately)
Sohan’s share is about Rs 14,222.2.