Teena started a business with Rs. 40,000. Jaya joined her after 4 months with Rs. 60,000. After 2 months, Teena withdrew Rs. 10,000 of her capital and 2 more months later, Jaya brought in Rs. 10,000 more. In what ratio should they share the profit at the end of the year?

The ratio of profit is calculated using the formula for effective capital, which is investment multiplied by time. Teena's effective capital is (40000 times 6) plus (30000 times 6), resulting in 420000. Jaya joined after 4 months and her effective capital is (60000 times 2) plus (70000 times 6), resulting in 540000. The required profit sharing ratio is 420000 to 540000, which simplifies by dividing both sides by 20000 to equal 21 to 26.

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