Hyder and Ahsan set up a business together with the initial investment of Rs. 90,000 and Rs. 60,000 respectively. At the end of the year, they earned a profit of Rs. 45,000. Find the share of Ahsan in the profit?
Hyder and Ahsan set up a business together with the initial investment of Rs. 90,000 and Rs. 60,000 respectively. At the end of the year, they earned a profit of Rs. 45,000. Find the share of Ahsan in the profit?
Explanation
Given:
Hyder’s investment = Rs. 90,000
Ahsan’s investment = Rs. 60,000
Total profit = Rs. 45,000
Step 1: Find the ratio of their investments
Hyder : Ahsan = 90,000 : 60,000 = 3 : 2
Step 2: Divide the profit in the ratio 3:2
Total parts = 3 + 2 = 5
Ahsan’s share = (2/5) × 45,000 = Rs. 18,000