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Profit in a partnership

A invests ₹20,000 for 12 months; B invests ₹30,000 for 8 months. A profit of ₹18,000 is shared in proportion to capital × time. How is it split?

Show the answer and the worked solution

Correct answer: A.

A ₹9,000, B ₹9,000

Worked solution

  1. A's share weight = 20,000 × 12 = 240,000. B's = 30,000 × 8 = 240,000.
  2. The ratio is 1 : 1, so each gets 18,000 ÷ 2 = ₹9,000.

Answer: A ₹9,000, B ₹9,000.

The idea

Partners share profit in the ratio of capital × time. A smaller investment kept in longer can match a larger one — always multiply before comparing.

Shortcut. Capital ratio 2 : 3 and time ratio 12 : 8 = 3 : 2 cancel exactly, so the profit splits evenly.

Common trap. A ₹8,000, B ₹10,000 — the option nearest a split by capital alone (2 : 3 gives ₹7,200 and ₹10,800); B's shorter time cancels his larger stake.

Profit in a partnership — Aptitude Question

Profit in a partnership: A invests ₹20,000 for 12 months; B invests ₹30,000 for 8 months. Answer and worked solution on CodeKairo.

Question

A invests ₹20,000 for 12 months; B invests ₹30,000 for 8 months. A profit of ₹18,000 is shared in proportion to capital × time. How is it split?

Options

  1. A ₹9,000, B ₹9,000
  2. A ₹10,000, B ₹8,000
  3. A ₹12,000, B ₹6,000
  4. A ₹8,000, B ₹10,000
Show the answer and the worked solution

Correct answer: A. A ₹9,000, B ₹9,000

Worked solution

  1. A's share weight = 20,000 × 12 = 240,000. B's = 30,000 × 8 = 240,000.
  2. The ratio is 1 : 1, so each gets 18,000 ÷ 2 = ₹9,000.

Answer: A ₹9,000, B ₹9,000.

The idea

Partners share profit in the ratio of capital × time. A smaller investment kept in longer can match a larger one — always multiply before comparing.

Shortcut. Capital ratio 2 : 3 and time ratio 12 : 8 = 3 : 2 cancel exactly, so the profit splits evenly.

Common trap. A ₹8,000, B ₹10,000 — the option nearest a split by capital alone (2 : 3 gives ₹7,200 and ₹10,800); B's shorter time cancels his larger stake.

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