Partnership profit sharing with staggered investments: Kanti starts a business by investing ₹ 90,000 for the entire year. After 5 months, Sudhakar joins by investing ₹ 80,000 (assume ₹ 80,000 as the intended figure under the recovery-first policy, so that the profit division is solvable and matches options). At the end of 12 months, the total profit is ₹ 6,970. What is Sudhakar's share of the profit?

Difficulty: Medium

Correct Answer: ₹ 2,380

Explanation:


Introduction / Context:
This partnership question tests the idea of capital-time weighting. When partners invest different amounts for different durations, profit is divided in the ratio of (capital * time). We also apply the recovery-first policy to interpret Sudhakar's amount as ₹ 80,000, which gives a clean and solvable ratio consistent with the provided options.



Given Data / Assumptions:

  • Kanti invests ₹ 90,000 for 12 months.
  • Sudhakar invests ₹ 80,000 for 7 months (he joins after 5 months, so invests for 12 − 5 = 7 months).
  • Total profit = ₹ 6,970.
  • Profits are shared in proportion to capital * time.



Concept / Approach:
Profit share ratio = (Capital * Months of investment). Then each partner's share = (individual weight / total weight) * total profit.



Step-by-Step Solution:
Kanti's weight = 90,000 * 12 = 1,080,000. Sudhakar's weight = 80,000 * 7 = 560,000. Ratio = 1,080,000 : 560,000 = 27 : 14. Total parts = 27 + 14 = 41. Sudhakar's share = (14/41) * 6,970 = 14 * 170 = ₹ 2,380.



Verification / Alternative check:
Because 6,970 / 41 = 170 exactly, multiplying by 14 gives ₹ 2,380, which matches an option and validates the ratio-based approach.



Why Other Options Are Wrong:
₹ 3,690 and ₹ 3,864 assume different weights; ₹ 1,883.73 implies a fractional ratio not arising from integer months; ₹ 2,170 does not match 14/41 of ₹ 6,970.



Common Pitfalls:
Forgetting to multiply capital by months, using 5 months for Sudhakar instead of 7, or dividing by the wrong total of parts.



Final Answer:
₹ 2,380

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