A and B started business with Rs.20000 and Rs.35000 respectively. They agreed to share the profit in the ratio of their capital. C joins the partnership with the condition that A,B and C will share profit equally and pays Rs.220000 as premium for this, to be shared between A and B. This is to be divided between A and B in the ratio of

Explanation:

Ratio of total capital A and B

= 20000 X 12 : 35000 X 12

= 240000 : 420000

Now,C gives Rs.220000 to both to make the capital equal.

A’s Capital = B’s capital

= 240000 : 420000

+200000 : 200000

= 44000 : 440000

If A takes Rs.200000 and B takes Rs. 20000 from C then both have the equal capital

So required ratio of divided amount = 200000 : 20000

= 20 : 2 = 10 : 1