A and B are partners in a business. A invets ₹20,000 for a period of 2 years. B invests ₹30,000 for a period of 3 years. If A's share of the total profit is ₹4,000, what is B's share of the profit?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹9,000.
Profit is divided based on Investment × Time
A’s investment = 20,000 × 2 = 40,000
B’s investment = 30,000 × 3 = 90,000
Ratio of profit (A : B) = 40,000 : 90,000 = 4 : 9
Now, A’s share (4 parts) = ₹4,000
1 part = 4000 / 4 = ₹1000
B’s share = 9 parts = 9 × 1000 = ₹9,000