Given:
- Capital of A: ₹80,000
- Capital of B: ₹40,000
- Profit-sharing ratio: 3:2
- Total profit for the year: ₹25,000
Step-by-Step Calculation:
Step 1: Calculate the total parts in the profit-sharing ratio
\[ \text{Total parts} = 3 + 2 = 5 \]
Step 2: Calculate the profit share of each partner
Profit share of A:
\[ \text{A's share} = \frac{3}{5} \times 25,000 = \frac{3 \times 25,000}{5} = \frac{75,000}{5} = 15,000 \]
Profit share of B:
\[ \text{B's share} = \frac{2}{5} \times 25,000 = \frac{2 \times 25,000}{5} = \frac{50,000}{5} = 10,000 \]
Step 3: Represent the distribution clearly
Distribution of profit:
- A's share of profit: ₹15,000
- B's share of profit: ₹10,000
Final representation:
Partner A:
- Capital: ₹80,000
- Profit Share: ₹15,000
Partner B:
- Capital: ₹40,000
- Profit Share: ₹10,000
Summary:
- Total Profit for the year: ₹25,000
- A's share (3/5 of total profit): ₹15,000
- B's share (2/5 of total profit): ₹10,000
Thus, the profit of ₹25,000 is distributed between A and B as ₹15,000 and ₹10,000 respectively, based on their profit-sharing ratio of 3:2.
