Question 95

A, B and C enter into a partnership by pooling the capital. A advances one-third of the capital for one third of the time. B advances half of the capital for half of the time. C advances the remaining part of the capital for whole the period. The ratio in which they divide the profit obtained in the business is

Solution

Let say,total capital is C and total time is T.

A invested$$=C/3.$$ for T/3 period of time.

B invested$$=C/2.$$ for T/2 period of time.

C invested$$=C-C/2-C/3=C/6.$$ for T period of time.

Their profit ratio should be as follows:

$$(C/3)(T/3):(C/2)(T/2):(C/6)T$$

$$=(1/9):(1/4):(1/6)$$

$$=4:9:6.$$

So, C is correct choice.

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