Question

A has invested ₹ 1,00,000 and B ₹ 25,000, and they earned a profit of ₹ 15,000. How much profit would A and B get?

Answer 1

Since the question does not specify the profit-sharing ratio, the provisions of the Indian Partnership Act, 1932, will apply. According to the Act, profits and losses are to be shared equally among partners, irrespective of their capital contributions. In this case, each partner’s share of the profit will be ₹ 7,500, which is half of ₹ 15,000.