Ab and C enter into a partnership firm by investing in the ratio of 3:...
Initial Investment Calculation in a Partnership Firm
Given:
- Initial investment ratio of Ab, B, and C = 3:2:4
- After 1 year, B invests Rs 2,70,000
- At the end of 2 years, B invests Rs 2,70,000 again
- Profit sharing ratio at the end of 3 years = 3:4:5
Calculations:
1. Let the initial investments of Ab, B, and C be 3x, 2x, and 4x respectively.
2. After 1 year, their investments will be 3x, 2x + 2,70,000, and 4x.
3. After 2 years, their investments will be 3x, 2x + 2,70,000, and 4x + 2,70,000.
4. At the end of 3 years, the profit will be shared in the ratio 3:4:5.
Profit Sharing Calculation:
- Ab's share = 3 * 3x
- B's share = 4 * (2x + 2,70,000)
- C's share = 5 * (4x + 2,70,000)
Equating the shares and solving for x:
3 * 3x : 4 * (2x + 2,70,000) : 5 * (4x + 2,70,000) = 3 : 4 : 5
Calculate the value of x:
9x : 8x + 10,80,000 : 20x + 13,50,000 = 3 : 4 : 5
9x = 3(8x + 10,80,000) = 4(20x + 13,50,000)
Solving the equations, we get:
x = 7,20,000
Initial Investments:
- Ab's initial investment = 3x = 3 * 7,20,000 = Rs 21,60,000
- B's initial investment = 2x = 2 * 7,20,000 = Rs 14,40,000
- C's initial investment = 4x = 4 * 7,20,000 = Rs 28,80,000
Therefore, the initial investments of Ab, B, and C were Rs 21,60,000, Rs 14,40,000, and Rs 28,80,000 respectively.