Question

Sanjeev started a business investing Rs.25,000 in 1999. In 2000, he invested an additional amount of Rs. 10,000 and Rajeev joined him with an amount of Rs. 35,000. In 2001, Sanjeev invested another additional amount of Rs.10,000 and Pawan joined them with an amount of Rs.35,000. What will be Rajeev’s share in the profit of Rs.1,50,000 earned at the end of 3 years from the start of the business in 1999?

Answer 1

The given information can be tabulated as:

Year ↓	Investment in ₹
	Sanjeev	Rajeev	Pawan
1999	25,000/-	0	0
2000	(25,000+ 10,000) 35,000/-	35,000/-	0
2001	(35,000 + 10,000) 45,000/-	35,000/-	35,000/-
Total	1,05,000/-	70,000/-	35,000/-

∴ The ratio of profits to be shared at the end of 3 years will be 1,05,000 : 70,000 : 35,000

i.e. in the proportion 3 : 2 : 1

Given, profit earned ₹ 1,50,000/-

∴ Rajeev’s share in the profit = `2/6 xx 1,50,000`

= ₹ 50,000/-