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A and B enter into partnership with capital as 7:9. At the end of 8 months, A withdraws. If they receive the profits in the ratio of 8:9 find how long B's capital was used?

Correct answer: D. 7 months

  • A. 6 months
  • B. 8 months
  • C. 10 months
  • D. 7 months

Explanation

A's capital is used for 8 months, giving a capital-time value of 7 x 8 = 56 capital-months. If B's capital of 9 is used for t months, the profit ratio condition gives 56:9t = 8:9, so 56 = 8t and t = 7 months. The likely mistake is option b, 8 months, which forgets that B's duration must be calculated rather than assumed to equal A's duration.

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