Salman started a hotel with an amount of ₹ 75,000. After 5 months De

1.	Salman started a hotel with an amount of ₹ 75,000. After 5 months Deepak joined with an amount of ₹ 80,000. At the end of the year they earned a profit of ₹ 73,000. How will they share their profit?
Answer» Given Salman’s investment = ₹ 75000 Salman’s period in business = 1 year = 12 months Deepak’s investment = ₹ 80000 Deepak’s period in business = 7 months The ratio of investments of Salman to Deepak = 75000 : 80000 = 15 : 16 The ratio of periods of business of Salman to Deepak = 12 : 7 The profit should be distributed on the basis of compound ratio of 15 : 16 and 12 : 7 is 15 × 12 : 16 × 7 = 180 : 112 = 45 : 28 Therefore, compound ratio = 45 : 28 Profit = ₹ 73,000 Total parts = 45 + 28 = 73 ∴ Salman’s profit = 73000 × 45/73 = ₹ 45000 Deepak’s profit = 73000 × 28/73 = ₹ 28,000

Salman started a hotel with an amount of ₹ 75,000. After 5 months Deepak joined with an amount of ₹ 80,000. At the end of the year they earned a profit of ₹ 73,000. How will they share their profit?

Answer»

Given Salman’s investment = ₹ 75000

Salman’s period in business = 1 year = 12 months

Deepak’s investment = ₹ 80000

Deepak’s period in business = 7 months

The ratio of investments of Salman to

Deepak = 75000 : 80000 = 15 : 16

The ratio of periods of business of

Salman to Deepak = 12 : 7

The profit should be distributed on the basis of compound ratio of 15 : 16 and 12 : 7 is

15 × 12 : 16 × 7 = 180 : 112

= 45 : 28

Therefore, compound ratio = 45 : 28

Profit = ₹ 73,000

Total parts = 45 + 28 = 73

∴ Salman’s profit = 73000 × 45/73 = ₹ 45000

Deepak’s profit = 73000 × 28/73

= ₹ 28,000