A and B are partners in a business. A invests ₹20,000 for a period of 2 years. B invests ₹30,000 for a period of 3 years. If A's share of the total profit is ₹4,000, what is B's share of the profit?
- (a)₹9,000
- (b)₹4,000
- (c)₹5,000
- (d)₹7,000
Answer
Why
Correct — A.
Rule: profit is shared in the ratio of capital × time.
A: 20,000 × 2 = 40,000
B: 30,000 × 3 = 90,000
Ratio = 40,000 : 90,000 = 4 : 9
A's 4 parts = ₹4,000, so 1 part = ₹1,000
B's 9 parts = 9 × 1,000 = ₹9,000 → option (a).
Why the others are wrong
- (b)₹4,000 — ₹4,000 splits the profit equally, as if both put in the same money for the same time. B's capital × time (90,000) is more than double A's (40,000).
- (c)₹5,000 — ₹5,000 makes the split 4 : 5. The capital-time products give 4 : 9, so B's share must be more than twice A's ₹4,000.
- (d)₹7,000 — ₹7,000 makes the split 4 : 7, still under twice A's share. B's product is 2.25 times A's, so B gets 2.25 × ₹4,000.
Concept
In a partnership, profit is divided in the ratio of each partner's capital × time. A partner who puts in more money, or keeps it in longer, earns proportionally more.
Work out each product, reduce the ratio, find one part from the share you are given, then scale up to the share you want.
Shortcut: B put in 1.5 times A's capital for 1.5 times as long, so B's share is 1.5 × 1.5 = 2.25 times A's. 2.25 × ₹4,000 = ₹9,000.
Key facts
- Profit ratio = capital × time for each partner.
- If the times are equal, the ratio is just the ratio of capitals.
- One part = the known share ÷ its number in the ratio.
Study next
Common traps
- Splitting by capital alone (2 : 3), which gives ₹6,000: not an option, and a sign that time was left out
- Reporting the total profit (13 parts = ₹13,000) instead of B's share
12 Sep 2025, 09:00, Quant Q.6 uses the same rule where the products tie: 80,000 × 9 = 1,20,000 × 6, so a ₹45,000 profit splits equally and B's share is keyed ₹22,500.
12 Sep 2025, 16:00, Quant Q.5 works it backwards: from B's ₹16,800 share, the total is keyed ₹34,800.
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