Two friends Prabhu and Suresh started a business with ₹ 1,00,000 eac

1.	Two friends Prabhu and Suresh started a business with ₹ 1,00,000 each. After 3 months Suresh left the business. At the end of the year, there was a profit of ₹ 20,000. Calculate the profits shared by Prabhu and Suresh?
Answer» Here Prabhu and Suresh started a business with ₹ 1,00,000. Prabhu continued till the end of the year. Suresh continued only for 3 months. The ratio of the contributions = 100000: 100000 = 1 : 1 Ratio of their period of business = 12 : 3 = 4 : 1 So, their profits should be divided on the basis of compound ratio Compound ratio = 1 × 4 : 1 × 1 Profit = ₹ 20,000 Total parts= 4 + 1 = 5 Suresh’s profit = 20000 × 1/5 = ₹ 4000 Prabhus profit = 20000 – 4000 = ₹ 16000

Two friends Prabhu and Suresh started a business with ₹ 1,00,000 each. After 3 months Suresh left the business. At the end of the year, there was a profit of ₹ 20,000. Calculate the profits shared by Prabhu and Suresh?

Answer»

Here Prabhu and Suresh started a business with ₹ 1,00,000.

Prabhu continued till the end of the year.

Suresh continued only for 3 months.

The ratio of the contributions = 100000: 100000 = 1 : 1

Ratio of their period of business = 12 : 3 = 4 : 1

So, their profits should be divided on the basis of compound ratio

Compound ratio = 1 × 4 : 1 × 1

Profit = ₹ 20,000

Total parts= 4 + 1 = 5

Suresh’s profit = 20000 × 1/5

= ₹ 4000

Prabhus profit = 20000 – 4000

= ₹ 16000