A and B invest ₹50,000 and ₹40,000 respectively. After 6 months, A withdraws all of his capital. At the end of the year, what is their profit-sharing?
Show answer & explanation
Correct answer: D
Explanation
Given:
A's investment = ₹50,000 (6 months)
B's investment = ₹40,000 (12 months)
A = 50,000 × 6 = 300,000
B = 40,000 × 12 = 480,000
Ratio = 300,000 : 480,000 = 30 : 48 = 5 : 8