A and B started a business with ₹ 20000 and ₹ 35000 respectively. They agreed to share the profit in the ratio of their capital. C joins the partnership with the condition that A, B and C will share profit equally and pays ₹ 220000 as premium for this, to be shared between A and B. This is to be divided between A and B in the ratio of?

Ratio of total capital of A and B = 20000 x 12 : 35000 x 12
= 240000 : 420000
Now, C gives ₹ 220000 to both to make the capital equal.
∴ A's capital : B's capital = 240000 + 200000 : 420000 + 200000
= 440000 : 440000
If A takes ₹ 200000 and B takes ₹ 20000 from C, then both have the equal capital
∴ Required ratio of divided amount
= 200000 : 20000
= 20 : 2 = 10 : 1
Hence. A and B should divide the amount in the ratio of 10 : 1.