Question

A invests Rs. 20,000 for 12 months and B invests Rs. 30,000 for 8 months. If the profit is Rs. 18,000, find B's share.

Solution

1. A's capital-time = 20,000 x 12 = 240,000.
2. B's capital-time = 30,000 x 8 = 240,000.
3. Their profit ratio is 1:1, so B's share = 18,000/2 = Rs. 9,000.