A and B invested Rs. 20,000 and Rs. 30,000, respectively. The profit at the end of the year is Rs. 60,000. What is B’s share of the profit?
Show answer & explanation
Correct answer: C
Explanation
Given:
A's Investment = ₹20,000
B's Investment = ₹30,000
Total Profit = ₹60,000
According to the formula:
Profit Distribution = In the ratio of investments
A : B = 20,000 : 30,000 = 2 : 3
Total Shares = 2 + 3 = 5
B's Share of Profit = (3 / 5) × 60,000 = ₹36,000