Once you attempt the question then PrepInsta explanation will be displayed.

Solution: Here, even for each individual, the capital was not the same for the entire period his money was in the business.

So, the term of the ratio for a person will be the sum of products of investment multiplied by time period for different parts of the year.

Peter Parker has 20, 000 for 6 months and then since he withdrew 5,000, he had only 15, 000 for the rest of the 6 months. His term of the ratio will be

(20, 000 \times 6) + ( 15, 000 \times 6) = 2,10,000

John Abraham joined with 30,000 which remained unchanged for 4 months and then he brought in 20, 000 more. So he had 50, 000 for 4 months only as he joined 4 months after the business began. His term of the ratio will be

(30, 000 \times 4) + (50, 000 \times 4) = 3, 20, 000

Hence, the ratio of shares of the profit will be 2,10, 000 : 3, 20, 000 = 21 : 32.

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