A, B, and C invest ₹20,000, ₹30,000, and ₹50,000, respectively, in a business. The profit at the end of the year is ₹50,000. What is A’s share of the profit?
Show answer & explanation
Correct answer: B
Explanation
Given:
A's investment = 20,000
B's investment = 30,000
C's investment = 50,000
Total profit = 50,000
By formula:
Profit ratio = Investment ratio
A : B : C = 20,000 : 30,000 : 50,000 = 2 : 3 : 5
Total share = 2 + 3 + 5 = 10
A's share = (2/10) × 50,000 = ₹10,000