A starts a business with ₹45,000 and was joined afterwards by B with ₹30,000. When did B join if the profit at the end of the year was divided in the ratio 2 : 1?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. After 3 months.
A invests ₹45,000 for 12 months.
B invests ₹30,000 but joins later.
Profit ratio at end of year (A : B) = 2 : 1
Profit is shared in the ratio of = Investment × Time
So:
A's contribution = 45000 × 12 = 540000
B's contribution = 30000 × t
The ratio = A/B = 2/1 = 540000/30000 × t
⇒ 540000/30000 × t = 2/1
⇒ 540000/2 = 30000 ⋅ t
⇒ 270000 = 30000 × t ⇒ t = 270000/30000 = 9
So B was in the business for 9 months.