A invests ₹60,000 while B invests ₹90,000, with A's investment lasting for 10 months and B's for 8 months. The total profit amounts to ₹40,000. What is the A's share ?
- (a)₹20,181.82
- (b)₹18,181.82
- (c)₹21,181.81
- (d)₹22,181.82
Answer
Why
Correct — B. Share the profit in the ratio of capital × months.
A's capital × months: 60,000 × 10 = 6,00,000
B's capital × months: 90,000 × 8 = 7,20,000
Reduce (divide both by 1,20,000): 6,00,000 : 7,20,000 = 5 : 6
Total parts: 5 + 6 = 11
A's share: 5⁄11 × 40,000 = 2,00,000⁄11 = ₹18,181.82 → option (b)
Why the others are wrong
- (a)₹20,181.82 — ₹20,181.82 is more than half of ₹40,000, yet A's 6,00,000 capital-months are fewer than B's 7,20,000. A's share has to be under ₹20,000.
- (c)₹21,181.81 — ₹21,181.81 is neither partner's share. B gets 6⁄11 × 40,000 = ₹21,818.18 (21,818, not 21,181), and the question asks for A.
- (d)₹22,181.82 — ₹22,181.82 is over half the profit, which would need A to hold the larger stake. A's ₹18,181.82 and B's ₹21,818.18 are the pair that add to ₹40,000.
Concept
When partners stay for different periods, profit follows capital × months, not capital alone.
B put in more money (₹90,000 against ₹60,000) but for fewer months (8 against 10). Multiplied out, A has 6,00,000 and B 7,20,000, so B still takes the larger share, 6 parts of 11.
Capital alone gives 2 : 3 and an A share of ₹16,000. Months alone gives 10 : 8, which favours A. The product, 5 : 6, is what the profit follows.
Key facts
- Profit ratio = capital₁ × time₁ : capital₂ × time₂.
- 6,00,000 : 7,20,000 reduces to 5 : 6 on dividing both by 1,20,000.
- 2,00,000 ÷ 11 = 18,181.8181…, which rounds to 18,181.82.
Study next
Common traps
- Dividing the profit in the capital ratio 2 : 3 and ignoring the different time periods.
- Computing B's ₹21,818.18 and matching it to ₹21,181.81 at a glance. The digits differ, and the question asks for A.
12 Sep 2025, 09:00, Quant Q.6 uses the same product: 80,000 × 9 = 1,20,000 × 6 = 7,20,000, so the ₹45,000 profit splits equally and B gets ₹22,500.
12 Sep 2025, 16:00, Quant Q.5 runs it backwards: 1,20,000 × 10 : 1,60,000 × 7 = 15 : 14, and B's ₹16,800 for 14 parts gives a total of ₹34,800.
Related PYQs
No directly related past PYQ was found.